On February 1, Finance Minister Nirmala Sitharaman will introduce the Union Budget for 2023–24 in the Lok Sabha, where there are expectations that the government would, among other things, increase the income tax band and offer relief to middle-class taxpayers.
In the Budget 2023, the Modi administration is expected to make two significant announcements regarding central government personnel, according to media reports.
The first notification, according to the report, should provide some respite for government employees, however, the second announcement might put a financial strain on them. The fitment factor in the upcoming pay commission is expected to be used to adjust central government employees' salaries.
According to sources, the government is also set to establish a new formula for compensation revision of the govt employees. It is significant to remember that the formation of the 8th Pay Commission has just one year left.
Budget 2023 Expected Announcement for Govt Employees:
In the budget for 2023, the Modi administration is also expected to make a significant announcement about the House Building Allowance (HBA) for central government employees. Currently, central government personnel is eligible to receive this allowance as a government advance for constructing or restoring a home.
Under this allowance, the employee is permitted to receive an advance payment for constructing a home of up to Rs 25 lakh. The government instead charges interest on it.
