The exchequer would take a hit of Rs 12,561 crore (Rs 125.61 billion) in 2008-09 if the government decides to implement the Sixth Pay Commission Report next fiscal, besides Rs 18,060 crore (Rs 180.60 billion) as one-time expenditure on paying arrears from January 1, 2006.

However, the government could segregate the arrear payment in two parts, in which case it would have to pay Rs 9,030 crore (Rs 90.30 billion) in each installment.

On the other hand, various other recommendations of the B N Srikrishna commission such as revised scheme of pension commutation and movement of defence personnel in para-military forces would save the Centre's kitty a sum of Rs 4,586 crore (Rs 45.86 billion).

As such, the net effect on the exchequer would be Rs 7,975 crore (Rs 79.75 billion), but the savings may not accrue in the first year.

The Cabinet is yet to accept the recommendations. Hypothetically, if the Cabinet decides to implement the report in toto from 2008-09, no savings may accrue to the exchequer.

In that case, the Centre may have to bear additional expenditure of Rs 12,561 crore next fiscal. Out of this, Rs 9,242 crore (Rs 92.42 billion) will be borne through the General Budget and Rs 3,319 crore (Rs 33.19 billion) through the Railway Budget.

Railway Minister Lalu Prasad, in his latest budget, has kept aside Rs 5,000 for the purpose. Of the total arrear payment, Rs 12,642 crore (Rs 126.42 billion) will have to be borne in the Centre's Budget, while Rs 5,418 crore (Rs 54.18 billion) in the Railway Budget.

If arrears are paid in two stages, Rs 6,321 crore (Rs 63.21 billion) would be in the Central Budget, while Rs 2,709 crore (Rs 27.09 billion) in the Railway Budget for each installment. 

The exchequer would take a hit of Rs 12,561 crore (Rs 125.61 billion) in 2008-09 if the government decides to implement the Sixth Pay Commission Report next fiscal, besides Rs 18,060 crore (Rs 180.60 billion) as one-time expenditure on paying arrears from January 1, 2006.

However, the government could segregate the arrear payment in two parts, in which case it would have to pay Rs 9,030 crore (Rs 90.30 billion) in each installment.

On the other hand, various other recommendations of the B N Srikrishna commission such as revised scheme of pension commutation and movement of defence personnel in para-military forces would save the Centre's kitty a sum of Rs 4,586 crore (Rs 45.86 billion).

As such, the net effect on the exchequer would be Rs 7,975 crore (Rs 79.75 billion), but the savings may not accrue in the first year.

The Cabinet is yet to accept the recommendations. Hypothetically, if the Cabinet decides to implement the report in toto from 2008-09, no savings may accrue to the exchequer.

In that case, the Centre may have to bear additional expenditure of Rs 12,561 crore next fiscal. Out of this, Rs 9,242 crore (Rs 92.42 billion) will be borne through the General Budget and Rs 3,319 crore (Rs 33.19 billion) through the Railway Budget.

Railway Minister Lalu Prasad, in his latest budget, has kept aside Rs 5,000 crore (Rs 50 billion) for the purpose.

Of the total arrear payment, Rs 12,642 crore (Rs 126.42 billion) will have to be borne in the Centre's Budget, while Rs 5,418 crore (Rs 54.18 billion) in the Railway Budget.

If arrears are paid in two stages, Rs 6,321 crore (Rs 63.21 billion) would be in the Central Budget, while Rs 2,709 crore (Rs 27.09 billion) in the Railway Budget for each installment.