Government servants' salary increased by Rs. 1200

What absorbed the attention of most people in respect of the budget was the increase in salaries. The Hon. President spoke about this topic in the budget speech as follows:
                                                                           "Government servants' salary structure was prepared at the ratio of 1 to 4 in 2006. This increase in salary was carried out through the cost of living and other allowances. Salary arrears too were paid. Since the deficit between government and private sector has risen, there is a dire necessity for initiating a national salary policy. Certain government and private institutions have effected payment of salaries on the basis of collective agreements. Pension as well as provident fund services too has widened. Certain government servants have requested that allowances presently in operation be added to the salary. Some government servants who have retired from service have requested that pension issues be resolved or removed. Though there were protests against the contribution of pension payments proposed by me; there is a request for it once more. Those will be included after a national salary policy will be prepared in the future by the Salary Commission.

Though it is so, I propose that like at the last budget, the collective allowance has been increased in this budget too. Further, I propose that on behalf of this allowance, an increase of Rs. 500 will be paid to pensioners who retired before 2006 and Rs. 350 more for the others. I would request that an increase in payment be made to the private sector".