Archive · 5 Dec 2025
8th Pay Commission May Cause Rs 9 Lakh Crore Fiscal Shock
Neelkanth Mishra, who is part of the Prime Minister’s Economic Advisory Council, spoke at a big meeting in New Delhi.
He warned that the government might have to spend a lot of money, between Rs 4 lakh crore and Rs 9 lakh crore, because of changes in salaries and pensions.
This is expected to happen in the year 2027-2028.
The money includes not just the new amounts but also money owed from previous periods.
This could be a big challenge for the government's budget.
Neelkanth Mishra warned of a potential fiscal shock due to the 8th Pay Commission.
The estimated cost ranges from Rs 4 lakh crore to Rs 9 lakh crore.
The cost includes revised salaries and pensions plus five quarters of arrears.
The impact is expected to be felt in the fiscal year 2027-2028 (FY28).
The warning was delivered at the CII IndiaEdge 2025 Summit in New Delhi.
- Who
- Neelkanth Mishra, Member of the Prime Minister’s Economic Advisory Council (EAC-PM)
- What
- Warning about the potential fiscal impact of the 8th Pay Commission
- When
- During the CII IndiaEdge 2025 Summit in New Delhi
- Where
- New Delhi, India
- Why
- To highlight the potential financial burden of revised salaries and pensions, including arrears, on the government's fiscal health
- Speaker
- Neelkanth Mishra, Member of the Prime Minister’s Economic Advisory Council (EAC-PM)
- Event
- CII IndiaEdge 2025 Summit in New Delhi
- Estimated Cost Range
- Rs 4 lakh crore to Rs 9 lakh crore
- Fiscal Year
- FY28
- Components
- Revised salaries and pensions, including five quarters of arrears