Cen­tre clears big pay hike for 47L staff to boost spend­ing At­tack on Is­tan­bul air­port kills 41, Turkey blames IS

Econ­omy set to gain from cash in­jec­tion, but in­fla­tion is still a worry

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com Reuters ht­metro@hin­dus­tan­times.com

The Union cab­i­net ap­proved on Wed­nes­day a big jump in salaries of cen­tral gov­ern­ment staff and sim­i­lar raises in pen­sions that will ben­e­fit some 10 mil­lion peo­ple. The new salaries and pen­sions will be ef­fec­tive from Jan­uary 1, 2016, fi­nance min­is­ter Arun Jait­ley said.

For ju­nior em­ploy­ees, the hike in ba­sic pay will be 14.27%, which means Rs 18,000 would be the min­i­mum pay of an em­ployee on the cen­tral gov­ern­ment’s rolls.

More cash in hand is likely to re­sult in higher con­sump­tion by the gov­ern­ment’s mas­sive em­ployee base, which ac­counts for a large seg­ment of the Indian mid­dle-class. More de­mand could boost the econ­omy through higher spend­ing on as­sets such as cars and hous­ing. “When you spend there is tax­a­tion, de­mand is also gen­er­ated. When you save that, sav­ings is used in devel­op­ment of the coun­try. It also has some in­fla­tion­ary pres­sure,” fi­nance min­is­ter Arun Jait­ley said. “So the ex­tra money also comes back Fi­nance min­is­ter Arun Jait­ley af­ter at­tend­ing the meet­ing on Pay Com­mis­sion. into the sys­tem which in­creases size of econ­omy,” he said.

The cab­i­net ap­proval takes in the re­port of the 7th Pay Com­mis­sion that had rec­om­mended in Novem­ber an av­er­age 23.55% hike in salaries, al­lowances and pen­sions of more than 4.7 mil­lion cen­tral gov­ern­ment em­ploy­ees and 5.3 mil­lion pen­sion­ers, of which 1.4 mil­lion em­ploy­ees and 1.8 mil­lion pen­sion­ers are from the de­fence forces.

Turk­ish in­ves­ti­ga­tors pored over video footage and wit­ness state­ments on Wed­nes­day af­ter three sus­pected Is­lamic State sui­cide bombers opened fire and blew them­selves up in Is­tan­bul’s main air­port, killing 41 peo­ple and wound­ing 239.

The at­tack on Europe’s third­bus­i­est air­port was the dead­li­est in a series of sui­cide bomb­ings this year in Turkey, part of the US-led coali­tion against Is­lamic State and strug­gling to con­tain spillover from neigh­bour­ing Syria’s war.

Pres­i­dent Tayyip Er­do­gan said the at­tack should serve as a turn­ing point in the global fight against ter­ror­ism, which he said had “no re­gard for faith or val­ues”.

One at­tacker opened fire in Rel­a­tives of a vic­tim of the sui­cide at­tack at the Is­tan­bul air­port wait out­side a morgue on Wed­nes­day. the de­par­tures hall with an au­to­matic ri­fle, send­ing pas­sen­gers div­ing for cover and try­ing to flee, be­fore all three blew them­selves up in or around the ar­rivals hall a floor be­low, wit­nesses and of­fi­cials said. Video footage showed one of the at­tack­ers in­side the ter­mi­nal build­ing be­ing shot, be­fore fall­ing to the ground as peo­ple scat­tered. The at­tacker then blew him­self up around 20 sec­onds later.

HT PHOTO

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