7th Central Pay Commission: How 2016 is different vs 2008 for macros and markets
Global financial services major UBS in a report said investors are complacent about any potential change in India’s policy framework, especially in the backdrop of 7th Central Pay Commission. The brokerage expects CPC to negatively impact government’s fiscal consolidation path and sees states to face bigger impact.
“Impact of CPC on Central government’s fiscal is likely 0.4 per cent of GDP, which many investors viewed as not a big deal. The impact is however much bigger on states (over 1.1 per cent of GDP),” said UBS in a report.