The implementation of the 7th Pay Commission for State government employees can lead to steep increase in committed expenditure over the next several years and would pose a severe challenge in maintaining fiscal deficit targets of the State in coming years, said Medium Term Fiscal Plan (MTFP) for 2024-2028.
Depending on the fitment factor, the additional financial implication of implementing 7th pay scale would range between ₹15,000 crore and ₹20,000 crore for the first year of implementation.
Chief Minister Siddaramaiah in his Budget (2024-25) said that the 7th Pay Commission is formed for revision of pay-scale of government employees and after receiving a report from the commission, it would be examined and suitable action taken.
