| Date: |
31-12-2015 |
| Subject: |
India needs to grow by additional 1-1.5% to sustain burden of wage increases: FM Arun Jaitley |
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NEW DELHI: Finance Minister Arun Jaitley said India needs to grow by an additional 1-1.5 percentage points so that it can sustain the burden of wage increases and pass on more benefits to workers. "In the coming year, there would be a burden of Rs 1.02 lakh crore of Seventh Pay Commission. OROP (One Rank One Pension) burden is also there. That burden can be sustained only when there is an increase in economic activity. Because of the increased economic activity, government revenue and resources will go up," he said.
Jaitley said the country's projected GDP growth of 7.5% is taking place when the world economy is experiencing a slowdown. "We need to increase our growth rate. We have to at least increase it by 1-1.5%," he said at a felicitation function organised by the Bharatiya Mazdoor Sangh.
The government scaled down its GDP growth estimates in its Mid-Year Economic Analysis for this financial year to 7-7.5% from 8.1-8.5% on account of a rainfall deficit and a slowdown in exports. The mid-year review raised concerns over the fiscal deficit target of 3.5% next year as it pointed out that a slower-than-anticipated nominal GDP growth would itself raise deficit target by 0.2% of GDP.
The FM said the government feels that if there is development in society, then its benefits should go first to workers and the poor.
Source : economictimes.indiatimes.com
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