New Delhi: Giving the hint that government is all set to implement higher allowances, Finance Ministry sources said that ‘higher allowances’ will have no impact on inflation.

Finance Ministry sources today said the government is ready to implement the higher allowances from May after receiving the report of Committee on Allowances.

“Over 47 lakh central government employees and 52 lakh pensioners will benefit by final report on allowances,” the sources added.

After the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances, the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year.

The 7th Pay Commission had recommended abolition of 52 allowances and subsuming 37 others out of 196 allowances, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

It’s been almost ten months and the Committee on Allowances has not yet set a date for the submission of the report on allowances to Finance Minister Arun Jaitley. However, the committee was initially given four months’ time to submit the report to Finance Minister.

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