The Union Cabinet on Wednesday approved setting up of a panel of secretaries to process the recommendations of the 7th Pay Commission, implying that implementation of new pay grades will be delayed further.

The government had promised to implement it from January 2016. The commission had  recommended a 23.55 per cent hike in government salaries last year which will pose a financial burden of  Rs 1.02 lakh crore or 0.65 per cent of the GDP

Briefing reporters after the cabinet meeting, Parliamentary Affairs Minister M Venkaiah Naidu said the panel will be headed by cabinet secretary.

“The Empowered Committee of Secretaries will function as a Screening Committee to process the recommendations with regard to all relevant factors of the 7th CPC in an expeditious detailed and holistic fashion,”  he said.

The commission’s awards are expected to put a burden of  Rs 74,000 crore on the general budget and Rs 28,000 crore on the railways budget.