BusinessLogrBusinessLogr
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: Pay panel recommendations on salary hike pose risk to fiscal consolidation: Fitch
Share
Aa
BusinessLogrBusinessLogr
Aa
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Follow US
© 2023 BusinessLogr News Network.
BusinessLogr > Economy > Pay panel recommendations on salary hike pose risk to fiscal consolidation: Fitch
Economy

Pay panel recommendations on salary hike pose risk to fiscal consolidation: Fitch

deep
Last updated: 2016/01/08 at 6:08 PM
deep Published January 8, 2016
Share
2 Min Read
SHARE

Pay hike poses risk to fiscal consolidation, says Fitch

Fitch Ratings said on Friday a proposed 23.6 per cent hike in salaries and pensions for about 10 million current and former government employees could hurt the country’s finances and underscore the weakness in its sovereign credit profile.

The pay hike proposed on Thursday by the government panel is smaller than past increases as the nation faces pressure to curb its fiscal deficit. It would add at least $15.43 billion to federal spending in 2016 – the first year of implementation – if accepted.

Fitch said the pay hike could challenge the government’s goal of achieving a fiscal deficit of 3.5 per cent in the year ending in March 2017, unless India can cut spending or raise revenues.

ALSO SEE: 10 facts on pay panel’s proposed 23.55% salary hike

“The planned wage increase is sufficient to add substantive challenges to achieving the planned medium-term consolidation targets,” Fitch said in a statement.

“Delaying an improvement in India’s fiscal position would underscore a longstanding weakness for the sovereign credit profile,” it added.

Fitch rates India “BBB-minus” with a “stable” outlook.

The credit agency said the government debt burden of nearly 65 per cent of gross domestic product was the highest among its “BBB-minus” rated countries, which have a median of 43 per cent of GDP .
[“source-businesstoday”]

You Might Also Like

5 things to know in life sciences: Week of April 21, 2025

H-1B in 2025: Reconsidering US movement pathways

The International relations of the Petroleum gas Exchange

Viewpoint | A Viksit Bharat Will Need Viksit, Intelligent Villages Too

2008 Securities exchange Crash

TAGGED: Pay panel recommendations on salary hike pose risk to fiscal consolidation: Fitch
deep January 8, 2016
Share this Article
Facebook Twitter Email Print
Share
Previous Article Pay panel recommendations to cost Rs 1.02 lakh cr to govt
Next Article Meeting FY17 fiscal deficit target of 3.5 per cent a challenge, says Citigroup

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • Tieghan gerard income in banks
  • 20 Fitness Franchises: Planet Fitness and Beyond

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • Tieghan gerard income in banks
  • 20 Fitness Franchises: Planet Fitness and Beyond

Recent Posts

  • 14 Magnificent Blogs From Large Businesses to Inspire Your Content Marketing
  • Investing in Youth: The Role of Development Banks

© 2023 BusinessLogr News Network.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?