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In its article the MoneyControl writes “Salaries are expected to increase by 25 to 33% across the board and the hike will take place with retrospective effect from January 1, 2006. However, there is no scope for any interim relief till the recommendations are implemented.
But the recommendations come at a time when the government is already burdened with a huge farm loan waiver and other schemes benefiting the social sector. But fears of pressure on the treasury are countered by the larger than expected tax collections and an improving fiscal deficit.” READ MORE….

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