Central government employees received higher salaries at the end of August, with the government crediting the month’s salary according to the 7th Pay Commission recommendations. With the many responsibilities, at times, creation of a contingency fund takes a back seat. Usually, financial advisers recommend a contingency fund that has money equivalent to 3-6 months’ expenses. This is not for the first time that higher pay for government employees will result in a consumption-led growth. This time too, the passenger vehicle segment is likely be a key beneficiary of salary increases due to the 7th Pay Commission.

Source: Mint September 06, 2016 13:30 UTC