The implementation of the Sixth Pay Commission contributed to a surge in urban purchasing power.
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Hyderabad: The implementation of the Sixth Pay Commission contributed to a surge in urban purchasing power, leading to people buying more vehicles which resulted in congestion of roads, said NITI Aayog member V.K. Saraswat. Speaking at the Administrative Staff College of India here, the former DRDO chief said: “The biggest problem today is the increase of purchasing power in the cities,” Dr Saraswat said.
“This consumption is much worse after the Sixth Pay Commission. That’s why you saw a large number of cars coming on the city (roads),” he said. The Sixth Pay Commission was implemented with effect from January 1, 2006. Dr Saraswat said cities like Delhi face traffic congestion due to the increase in the number of automobiles. “Why there is a problem in Delhi? There used to be few cars up before the Sixth Pay Commission. But it all (happened) after the Sixth Pay Commission (as) those who don't need cars also have cars. As result you have congestion,” Dr Saraswat said.
On innovation, he said the MSME sector was neglected in terms of encouraging innovation despite the fact that it was the largest contributor in terms providing employment opportunities. “We have to breed innovation in MSMEs because nearly 45 per cent of the jobs are created by them,” he said and noted that the sector was being ignored in favour of corporates and big industry.
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( Source : deccan chronicle )
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