'1.5 per cent extra growth needed to grant wage hikes'

New Delhi, Dec 30: The government is ready to have a dialogue with the trade unions on wage increases, but the country needs to grow by an extra 1-1.5 percent so that it can sustain wage hike and other benefits given to workers and the poor, Fince Minister Arun Jaitley said on Wednesday.

“Our GDP growth of 7.5 percent is at a time when the world is experiencing global slowdown. We need to increase our growth rate. We have to at least increase it by 1-1.5 percent,” he said at a felicitation function organised by the Bharatiya Mazdoor Sangh.

“In the coming year, there would be a burden of Rs 1.02 lakh crore of Seventh Pay Commission, OROP (one rank, one pension) burden is also there. That burden can be sustained only when there is increase in economic activity. Because of increased economic activity, government revenue and resources will go up,” the fince minister said. (ians)