7th Pay Commission: Why CG employees will get nothing in the Union Budget 2020
New Delhi, Feb 01: Will there be good news on the 7th Pay Commission in the Union Budget 2020.
Going by reports there are likely to be income tax cuts, but that would be the extent that Central Government employees could expect.
After corporate tax cuts in September last year, speculation is rife about possible reduction in personal income taxes. A combination of an increase in the basic exemption limit and/or the introduction of a differentiated tax rate structure for higher incomes may be on the cards.
To cushion the impact on collections, these tweaks might be accompanied by rationalisation in tax rebates.
"The government announced a slew of stimulus measures in the last four months but consumer confidence is missing. Not many are eager to take loans to buy homes or cars fearing the worst. The feel good factor in the economy is missing," a senior government source said.
"I think the Budget will be a feel-good Budget that will try to restore faith in the economy and spur spending and investments," the source said.
Apart from this there would be sops for the farming and corporate sector. This would mean that the CG employees should not expect anything on the pay hike or DA hike in the Union Budget 2020. The long and short of it is that CG employees would have to wait a while longer for some good news on the 7th Pay Commission.