A separate pay scale has also been carved out for DGPs, GM (Railways), members of boards of Income Tax, Customs and Central Excise, Postal and Ordnance Factories among others to take them to the level of Rs 80,000 in two years as against the three years in the pre-revised scale.

Middle-level police and civilian officers like DIGs, Conservator of Forests, Scientist E and F etc have also been placed in the highest pay band of PB-4.

While there were fears that the revised pay scales may have an impact on inflation, Finance Minister P Chidambaram said there was no threat of missing the budget deficit targets. “The impact of the pay commission report on inflation was factored into when the Cabinet cleared the report after Committee of Secretaries suggested modifications on the report,” he said.

According to Chidambaram, the burden on the Union Budget would be Rs 15,717 crore and Rs 6,414 crore on the Railway budget for the current financial year.