The rollout of the 8th Pay Panel in FY28 is likely to weigh heavily on the country’s finances, with the combined payout for the Centre and states expected to exceed ₹4 lakh crore, Member of the Prime Minister’s Economic Advisory Council (EAC-PM) Neelkanth Mishra said on Wednesday. Adding five quarters of arrears could lift the overall burden to around ₹9 lakh crore, he added.

“The government may also keep in mind that in FY28 there will be the Pay Commission. And the Pay Commission at the general government level will be ₹4 lakh crore plus; there will be five quarters of arrears, so that’s like a ₹9 lakh crore burden,” Mishra noted.

Given the commitment to a debt-to-GDP target, Mishra cautioned that the added fiscal pressure will require careful policy adjustments. “Given there is a debt

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