FRBMA targets to be met: FM on Pay panel Report

New Delhi, Aug 14 (UNI) Finance Minister P Chidambaram today said the government will meet the targets set out in the iscal Responsibility and Budget Management Act (FRBMA), notwithstanding the burden that will be imposed in implementing the Sixth Pay Commission Report.

Mr Chidambaram told Reporters here that the additional burden of Rs 15,717 crores and Rs 6,400 crores announced in the revised Pay Commission Report have been factored in the General Budget and Railway Budget respectively.

The Finance Minister was asked how the Pay panels recommendations would impact on the inflationary level, as compressing aggregate demand was a key objective of the tight money policy stance.

Mr Chidambaram, however, said while the targets set under the FRMB Act will be met, the off-budget expenditures have been on the rise.

Mr Chidambaram did not dwell further on the off-budget expenditures, except saying that "everyone was aware of these." UNI GS SBA KP1612