Implementation of One Rank One Pension (OROP) and an increase in salary bill due to 7th Pay Commission will not strain government’s fiscal position, Minister of State for Finance Jayant Sinha said on Monday.
“I think we are in a very good shape as far as fiscal management is concerned. That was appreciated by all economists,” he said while interacting with reporters after a meeting of economists which was chaired by Finance Minister Arun Jaitley at NITI Aayog.
He made it clear that the government’s fiscal position is strong enough to bear the impact of OROP and implementation of 7th Pay Commission.
OROP is likely to result in an outgo of Rs 8,000-10,000 crore this fiscal.
The pre-Budget meeting discussed various issues, including agriculture productivity, job creation and fiscal expenditure. “We had some of India’s most eminent economists and commentators there. Obviously, it is very early in the cycle to start the consultation. But we felt that if there were good ideas, we could incorporate them even in this fiscal year. Obviously, for the preparation of the current budget, we could begin the work on that right now,” he said.
“It was very good interaction and we look forward to incorporating much of this for this fiscal year as well as coming fiscal.”