The government is increasing expenditure on pension by over 30 per cent to Rs 32,690 crore this fiscal, from what was originally provided, due to the implementation of the Sixth Pay Commission report, which is expected to spur demand in the slowing economy.
In the Interim Budget presented by Finance Minister Pranab Mukherjee in the Parliament, pension outflow is proposed to increase further by over 7 per cent to Rs 34,980 crore in next fiscal over the revised estimates for the current fiscal.
He said implementation of the Sixth Pay Commission's recommendations has benefited over 30 lakh pensioners.
The revised pay structure has also benefited over 45 lakh central government employees, including defence forces and para-military forces, Mukherjee said.
He expressed the hope that this will not only improve the quality of administration, but also the economy by supporting demand.
