7th Pay Commission: Will GST roll out first or higher allowances and HRA at 30 per cent

The Finance Ministry is likely to seek a report from each of the ministries on the grievances of the central government employees.

Will the GST roll out delay the full implementation of the 7th Pay Commission recommendations? Sources in the Finance Ministry say that while the centre does not want to delay the announcement of higher allowances and HRA, it would first focus on roll of the GST.

There has already been a considerable delay in the announcement of higher allowances and HRA at 30 per cent for central government employees waiting for good news. Another reason for the delay is the foreign trips of Prime MInister Narendra Modi who will be visiting the US.

GST or pay commission

Finance Ministry sources said that they are very busy with the GST roll out. Earlier there were rumours that the GST roll out would be postponed to August 1. However Finance Ministry Arun Jaitley dismissed the rumours and said that it would happen on July 1. The employee union leaders said that the Cabinet will take up the matter relating to higher allowances and HRA on June 28.

Agenda not fixed

The agenda for the Cabinet meeting has not yet been fixed. On the June 28 meeting, the Cabinet is likely to give preference to GST, India's biggest tax reform. Sources said that time would be made for the higher allowances and HRA as per the 7th Pay Commission. However if further discussion is needed, then the issue would be taken up in the next cabinet meeting.

Grievance reports

The Finance Ministry is likely to seek a report from each of the ministries on the grievances of the central government employees. In the report the respective ministries would put-forth the problems being faced by the central government employees. These would be taken into account before a final announcement is made.

Will it be a phased roll out

It is not clear whether the higher allowances and HRA as per the 7th Pay Commission will be rolled out in one shot or in a phased manner. The centre would take into account the burden on the exchequer. Sources said that the government does not want to delay the matter and hence is doing its best for a one time roll out. Moreover there is a concern following the IB report which states that the unrest is growing among the central government employees. The centre would not want to take chances. With the GST roll out round the corner, the centre cannot afford a mass strike by the Central Government employees.

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