Tuesday, March 1, 2016

7th CPC & OROP Allocation in Union Budget 2016-2017

After the Budget Speech, Arun Jaitley replied to a question about 7th CPC as below…
“Secretaries panel will decide the final burden on the government, a significant part of liabilities arising out of 7thCPC have already been factored in the Budget”, said Jaitley”
We looked into the Budget annexures to find the estimated allocation for 7th CPC and stumbled across the below while reading through the MACRO-ECONOMIC FRAMEWORK STATEMENT 2016-17 (file name: allfrbm.pdf) file which clearly has allocated the funds for OROP and 7th CPC.
The implementation of the Seventh Pay Commission due from 1st January, 2016 is to be implemented during the financial year 2016-17 as also the revised One Rank One pension scheme for the Defence services. The government has made provisions for the additional liabilities on these count.
On the plan side also a substantial increase of 15.3 per cent over RE 2015-16 has been provided for. This is unlike the previous financial year when on account of shrinking resources of the Centre on account of higher share of tax devolution to the States, the plan provision in BE 2015-16 was made with a marginal reduction over the revised estimates for 2014-15. In BE 2016-17 the total expenditure of the Government is estimated at about 13.1 per cent of GDP, thereby marking a marginal decrease over the RE 2015-16. This is against the increase in total expenditure of the Centre by 1.4 percentage points during 2008-09, when the Sixth Pay commission report was implemented.
In BE 2016-17, the estimated expenditure on pension payments is ` 1,23,368 crore, which works out to about 0.8 per cent of GDP. The substantial increase in pension payments in the ensuing year is due to the provision made for the implementation of the recommendations of the Seventh Pay Commission as well as additionality provided in Defence (Pensions) towards One Rank One Pension (OROP). The total expenditure on pensions in the medium term is estimated at about 0.7 per cent of GDP.
As the Honourable Members are aware, the Seventh Central Pay Commission has submitted its Report. Following the past practice, a Committee has been constituted to examine the Report and give its recommendations. In the meantime, I have made necessary interim provisions in the Budget.
This clearly shows there has been plans and allocation for the 7th CPC and OROP recommendation and time will tell when it would be implemented and how much.


  1. dear sir,

    in the name of OROP we ex army people have been tortured and disrespected and humiliated to the full extent, different dates, calculation at their own will, now from the budget speech we come to understand OROP is likely to be released during the financial year 2016-2017. we are treated as second class citizen by the MODI government. the curses of us and aggrieved family members of ex army people will act on firstly jaitely secondly parikkar and lastly modi, very shameful thing even god will never forgive them. let us bear and leave to the almighty

  2. We got a PM who claims that he is not clear about the mole cations of his election promises, we got a FM who is neither a committed lawyer, economist, or an elected member of the Parliament, he came to the post by the back door. The Defence Minister, Mr Parrikar still goes by his much wasted word "SOON" for everything from OROP to the Defence a Preparedness. To conclude, all these people can't sort out a simply defined OROP for the Nation's security, how can they make this country SMART. DENAY, DELAY AND KEEP PEOPLE ENGAGED IN SELF CREATED CONTROVERSISE TILL THE OPPOSITION AND THE COUNTRY IS WEAKENED TO OPPOSE THEM. The government is happy as the bureaucrats of the UPA are working for them not knowing that their graves are being dug by those bureaucrats only. The country is being led to the seas for drowning once forever.

  3. sir, can you send me the Union Budget 2016 updates in a pdf file.

  4. Even if BJP gets defeated in the next General Elections in 2019,which political party is there which is worth voting for.?

  5. For the OROP scheme we, the veterans find difficult at every stage. The scheme arrears was said to be paid in feb now in mar and still doubt whether in the budget 2015-16 itself.

  6. When orop actually psyment received by ex servicemens.

  7. जय श्री कृष्ण: 7CPC..7वें वेतन आयोग NO NEWS IN BUDGET,,HOPE HERE... http://kaisestartkare.blogspot.com/2016/03/7cpc7-no-news-in-budgethope-here-u-can.html?spref=tw