Finance Minister Arun Jaitley on Monday said fiscal 2016-17 would be extremely challenging because of additional burden on the government on account of the recommendations of the Seventh Pay Commission.
"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," he said, presenting the Union Budget 2016-17 in the Lok Sabha.
The Seventh Pay Commission has recommended hike in salaries of central government employees. Implementation of its recommendations is expected to add about half a per cent of the GDP to the central government's wage bill.