Not much impact to State Governments

The Planning commission does not foresee any significant disruption on account of increase in salaries of state government employees.

'I don't think that this disruption is going to be all that cruicial,' Planning Commission Dy. Chairman Montek Singh Ahluwalia said to the Hindustant Times on the possible impact of the adoption of the Sixth Pay Commission award by state government.

Pointing out that blind adoption of the Pay Commission's award by the state government was not a good idea, Ahluwalia said Pay Commission were constituted once in 10 years and the states can do many things to neutralise the impact.

The government, he said was made to effect a big increase in salaries of its employees at the end of 10 years as the dearness allowance does not adequately take care of inflation. 'So at the end of 10 years, the government will be benefitting from a squeeze in real pay because the DA was never enough, so you have a big increase,' he said.