Railway Minister Lalu Prasad on Tuesday made a provision of Rs 5,000 crore (Rs 50 billion) in the Railway Budget 2008-09 to implement 6th Pay Commission Report, which is expected to be submitted by April four.
"I have made an ad hoc provision of nearly Rs 5,000 crore (Rs 50 billion) for the anticipated recommendations of the 6th Pay Commission," Prasad said in his Railway Budget speech in Parliament.
This provision will include around Rs 4000 crore (Rs 40 billion) for salaries, wages and other allowances and the remaining portion for pension.
The Railway Minister, in fact, had made a provision of Rs 1,250 crore (Rs 12.5 billion) for the Pay Commission report, had it been implemented in the current fiscal.
"I had made a provision of Rs 750 crore (Rs 7.5 billion) in ordinary working expenses and Rs 500 crore (Rs 5 billion) in the Pension Fund in anticipation of recommendations of the 6th Pay Commission," Prasad said.
Since the implementation is not likely in the current fiscal and due to "economy measures", there is likely to be a saving of Rs 966 crore (R 9.66 billion) in Ordinary Working Expenses and Rs 400 crore (Rs 4 billion) in the Pension Fund, the Railway Minister said.
In a written reply in the Rajya Sabha on Tuesday, Minister of State for Finance P K Bansal said, "the (Pay) Commission is to finalise and submit its Report within 18 months of its constitution, that is by April 4, 2008."
