With the second part of the Budget session in Parliament starting on Thursday, all eyes are on Finance Minister Arun Jaitley who may just announce a hike in allowances for Central government employees.
The Committee on Allowances has already submitted its report to the Finance Ministry in which it has reviewed the recommendations of the Seventh Pay Commission on allowances.
The Committee under Finance Secretary Ashok Lavasa is believed to have suggested that the house rent allowance be kept as it is and not brought down as recommended by the Seventh Pay Commission.
The pay hike under the Seventh Pay Commission has been the lowest in the last 70 years and a decrease in allowances is unlikely to go down well with nearly 50 lakh government employees.
THE DEVELOPMENTS IN THE SEVENTH PAY COMMISSION STORY:
With Uttar Pradesh and Manipur voting in the final phase today, the model code of conduct will be lifted by the end of the day. The Narendra Modi government, which could not make any major announcements during the poll season, is expected to speak on the allowances soon.
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