The state government on Wednesday cleared a pay hike for its 21 lakh employees — working and retired — as per the Sixth Pay Commission’s recommendations.
Salaries of administrative staff, doctors, nurses and policemen, among others, would be hiked by 20 to 25 per cent of their basic pay from April.
The decision will put an additional annual burden of Rs 8,091 crore on the exchequer in an election year. This means the state would have to cut development projects worth about Rs 8,000 crore.
The hike will have retrospective effect from 2006, and the difference would put a further burden of Rs 18,370 crore on the exchequer. It will be paid over five years. The state’s salary bill will now be Rs 30,624 crore, compared to Rs 22,533 crore earlier.
The cash-strapped Finance Department has put on hold payment of house rent allowance and transport allowance, which would have led to yet another burden of Rs 4,300 crore on the state kitty.