The Sixth Pay Commission on Monday submitted its report to the government, presumably recommending a 40 per cent hike in salary for central government employees.
While it will spell a bonanza for the 4.5 million central govt staffers, the exchequer is likely to a take a hit of around Rs 20,000 crore, if not more.
And although the pay panel recommendations are only for central government employees, the states will also want to implement its terms too woo a large vote bank. The financial impact of this will be gargantuan.
While Finance Minister P Chidambaram did not set aside anything in the Budget for the pay panel recommendations, he was confident of meeting the challenge.
So where will the money to pay government staff come from? Should government employees and those working in the private companies get similar salary? Tell us what you think?