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
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.