‘Public funding needed for growth’ by implementing 7th Pay Commission

C Rangarajan, president of Indian Statistical Institute (ISI), on Friday said that public investment should be increased as the Centre is hiking the salaries of Central employees, by implementing the 7th Pay Commission recommendations.

Speaking on the sidelines of the 50th convocation of ISI, Prof. Rangarajan said that for accelerating the growth in the state the need of the hour is to increase public investment. He feels that since private investment is not going up, rise in public investment could accelerate the growth of private investment in the country.

The 7th Pay Commission,headed by Justice (retd) A K Mathur, submitted its report to the government last month,recommending 23.55 per cent overall hike in pay, allowances and pension of Central government employees with effect from January 1, 2016. This means that the Centre’s salary bill will increase by Rs 1,02,100 crore in 2016-17.