On Wednesday, the Modi government made key announcements that could have a direct impact not only on your work schedules but also your pay packages. After relaxing foreign direct investment rules earlier this month, the government’s newly-announced policies are aimed at encouraging employees to earn more and spend more.
7th Pay Commission Cheer: If you are a government employee, then the clearance of the 7th Pay Commission is what you have been waiting for. The government has now cleared nearly 23.5 per cent pay hike in salaries and pensions of government employees. About 50 lakh central government employees and 58 lakh pensioners will get a minimum pay hike of 20 per cent and a maximum pay hike of 25 per cent.
The money that the government is going to put in the pockets of consumers is likely to bring in good dividends, boosting demand for several sectors as well as increase the spending capacity of consumers.
Monsoon Session To ‘Rain In’ GST: For the business community, the monsoon session that the government said will begin from July 28 to August 12 may hold great surprises. The government has all its ammunitions out this time relating to the Goods and Services Tax Bill, which would replace multiple federal and state taxes and has been stalled in the Parliament since more than a decade now.
The Parliamentary Affairs Minister M Venkaiah Naidu, on Wednesday, said the government is confident of GST bill’s passage in the Monsoon session. “We have enough numbers but voting will be the last option,” Naidu said. The GST Bill clearance will reduce costs for businesses by paving the way for a single market for goods in India for the first time and bringing India’s tax regime at par with global levels.
Medicine For Medical Students: The Monsoon Session may also see replacement of ordinances on Combined Entrance Exam for medical and dental colleges bringing cheer for medical students.
24/7 Entertainment & Equality: There is nothing that can stop women now from working 24/7 with the clearance of the Model Shops and Establishments Act, 2015. Eating joints, movie theatres, malls, and local markets now have government’s official go-ahead to remain open round the clock. This will not only increase employment opportunities for both men and women, but also provide a boost to the business and the startups community.
Hand In Hand Exploration: The government is also pushing the private sector to indulge in public services more than ever before. Mining will now not only be restricted to state-run corporations. The government has granted the private sector a chance to enter exploration of mines via the clearance of the National Mineral Exploration Policy, which will result in the auction of 100 prospective mineral blocks.
Rajan To Revise Rates?: It, however, remains to be seen whether the government’s attempt to reboot the economy will be a win-win for all as the government will now have lower spending capacity and may end up hiking taxes to make up for the sops granted. Raghuram Rajan is also now left to do more as the RBI may have to deal with risks on consumer price inflation, which has seen an upward trend since April.