The wholesale index-based inflation rate is further increased to 12.44 per cent. It was recorded 12.01 per cent in the previous week. The inflation rate was 4.39 per cent in the corresponding period in 2007. The growing rates of food, fruits and fuel prices have contributed in the increased inflation rate.
The prices of fruits increased by 8.9 per cent for the week ended August 2. The prices of maize, moong, urad and other spice went up by 4 per cent and 3 percent respectively. The prices of textile and cement were also increased during this week.
Due to the gross domestic product growth, which has already put an end to the three year of growth that was in the range of 9%, the high prices will not come down soon. The fact was reveled today by the Prime Minister’s Economic Advisory Council (EAC).
The EAC’s forecast is lower than RBI’s forecast of 8 percent estimate. It is also in line with several other forecasts that have estimated growth at between 7.5 and 8% in 2008-09.
“I am confident the GDP growth will be close to 8 per cent this year,” as said by Finance Minister P Chidambaram, when he was asked to comment on the present state of EAC forecast.
The Indian cabinet yesterday sanctioned an average 21% pay increase for 5m federal employees and military staff, the first revision of government pay scales during the last 12 years.
P. Chidambaram, finance minister, said the civil servants' pay hike that will be backdated to January 1 2006, will cost Indian taxpayers $3.6bn this year, comprising part of the debt from 2006.
Moreover, Indian Railways will have to pay $1.5bn to its staff.
The eyes of the central government employees will be firmly glued on the forthcoming 6th Pay Commission Pay Scale, which is likely to be announced on Friday, Aug 15.
The central government has sanctioned the setting up of the sixth pay commission to revise salary structures plus other perks for its 5.5 million staff across the country.
The sixth pay commission is estimated to cost the government an additional Rs 20,000 crore.
Armed forces, civil servants and paramilitary staff will get to rejoice this Independence Day with the administration ready to approve the Sixth Pay Commission Report that was postponed in the Parliament earlier this year, but not implemented up till now.
A high level conference on Wednesday (August 13) led by Prime Minister Dr. Manmohan Singh discussed the pay panel details and the suggestions of the empowered group of Secretaries that went into the anomalies and other matters.
recorded 12.01 per cent in the previous week. The inflation rate was 4.39 per cent in the corresponding period in 2007. The growing rates of food, fruits and fuel prices have contributed in the increased inflation rate.
employees and military staff, the first revision of government pay scales during the last 12 years.
The eyes of the central government employees will be firmly glued on the forthcoming 6th Pay Commission Pay Scale, which is likely to be announced on Friday, Aug 15.
Independence Day with the administration ready to approve the Sixth Pay Commission Report that was postponed in the Parliament earlier this year, but not implemented up till now.
