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Essence: While recommending wage and pension increases for bureaucrats in 2015, the 7th Pay Commission stated that a lean state combined with an agile and young bureaucracy will assist provide public goods more effectively. GoI now plans to hire 1 million workers in the next 18 months, almost a third more than it already employs. This intervention is intended to address the job crisis, reverse the reform to reduce bureaucratic growth and will wreak havoc on government budgets.
The solution to the employment problem is to increase public investment and other departments, this will stimulate GDP and allow the private sector to recruit more people, hence increasing salaries and stimulating demand. An increase in recruiting is expected to worsen the operating ratio, leaving fewer resources available for capital investment. The financial repercussions of the Government of India's hiring drive cannot be ignored.
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