Friday, May 25, 2007

Again on public servants pay rise

Public servants' pay rise ranging from 35 - 7.5 % has caused few concerns:

  1. Rising price especially due to demand-pull inflation
  2. Stronger economic growth via higher consumption expenditure and feel good factor (wealth effect)
  3. Fiscal deficit position of the government.
  4. Wage adjustment in the private sector
  5. Impact of the above mentioned points over other working groups i.e self-employed
  6. Prediction of the next general election.

Read some analyses from the Starbiz

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