I don’t know whether this is a good move or a bad one. On one angle, in the light of news like this, it seems that increasing government salaries is the right thing to do. It might attract the younger generation to look at government jobs as a career.
On the other hand, I feel bad that more of my tax money is going to go to people who sit on their asses doing nothing. As it is, any Indian knows what kind of treatment can be expected in the government office. Now, I hate to be paying them more from my pocket and then get insulted. But, I hope that atleast bribery and corruption comes down a bit after a pay hike.
If you look at what used to happen 10-12 years ago, when government servants used to be paid as much or as well as the private sector. But today, its very different. Today, private sector salaries are 10 times government salaries, especially at the top. So in India, people in the government are sort of overstaffed, overpaid and under worked at the bottom and understaffed, overworked and underpaid at the top. This has to change if you want the government to do well.
[ Source: Private sector salaries for Govt employees? ]