Union Budget 2016-17 has made reasonable provision for the expected increase in salaries, allowances and pensions due to the recommendations of the pay commission (CPC) and implementation of the one rank, one pension (OROP) for ex-military personnel in the coming financial year.
Finance Minister Arun Jaitley had said in February, before the Budget, that he would have to provide Rs 1.1 lakh crore for both. The 2016-17 documents show he has allocated Rs 1.06 lakh crore more for defence and civilian government employees’ pay, allowances and pension from the revised estimates for 2015-16. This is despite promising to meet the fiscal deficit target of 3.5 per cent of gross domestic product. The 2016-17 estimates for pay, allowances and pension for defence and civilian government employees total about Rs 4.03 lakh crore, compared with the revised estimates of Rs 2.97 lakh crore for 2015-16.