Union Budget 2023 : Finance Minister Nirmala Sitharaman will present the budget on 1 February 2023. All industries, businessmen, taxpayers, general public and government employees are also sending their expectations from the Union Budget to Nirmala Sitharaman through different mediums.
After Kovid and now amidst the apprehensions of a new wave coming, everyone is expecting the government to come up with such a budget which will increase the disposable income which will help people to increase savings and investment. The only question in the mind of government employees is whether the salary of central employees will be increased in the budget this time. Will the finance minister give green signal to the fitment factor in the budget?
There may be a decision in the fitment factor in the budget
It is expected that a decision on the fitment factor may be taken in Budget 2023. This time it is expected that after getting approval from the cabinet, the fitment factor will be included in the expenditure of the budget. If the central government increases the fitment factor, then there can be a big increase in the salary of government employees. The salary coming in the hands of central employees will increase.
The fitment factor decides the salary of government employees.
The fitment factor serves to decide the basic salary for all central government employees. The Modi government last increased the fitment factor in the year 2016. Then the government had increased the minimum basic salary of the employees from Rs 6,000 to Rs 18,000. If the fitment factor is increased again, then the minimum basic salary can be Rs 26,000. At present the minimum basic pay ie salary is Rs 18,000, which will increase to Rs 26,000.
All these allowances will increase due to increase in basic pay (Dearness Allowance – DA)
If the basic pay increases from Rs 18,000 to Rs 26,000, then the allowances on the basic pay will also increase. Dearness Allowance (DA) is equal to 38% of the basic pay. The calculation of DA is calculated at 38% of the basic salary. That is, with the increase in the basic salary, the dearness allowance will also automatically increase. The government can do a bumper increase in salary in the budget.
