Agartala, April 5 (TIWN / IANS): Responding the demands of ruling and opposition party affiliated employees bodies, the Tripura government on Wednesday set up a high-powered committee on increasing salaries and pensions for its 209,000 employees and pensioners.

"A three-member Pay and Pension Revision Committee has been constituted by the cabinet for giving recommendations for revision of existing pay structure and pension for the government employees and pension holders," Chief Minister Manik Sarkar announced soon after the meeting of the council of ministers.

"After the Central government acceptance of the proposals of the Seventh Pay Commission, we are also thinking to hike the salaries and pensions for the government employees and pension holders. But financial scarcities become an impediment," he told reporters.

Former Chief Secretary G. K. Rao would be the Chairman of the Pay and Pension Revision Committee and Principal Secretary Sushil Kumar and Additional Secretary Debashish Modak would be the member and secretary to the committee respectively.

Sarkar, who chaired the cabinet meeting, said that the committee has been asked to submit its proposals with 45 days.

Meanwhile to increase salaries and pensions of the state government employees, additional amount of Rs 6 billion has been proposed in this year's budget presented by Finance Minister Bhanulal Saha in the state assembly on February 20.

The employees organisations, irrespective to the affiliation of ruling and opposition parties have been demanding salaries and pensions at par with the central government employees.

The Tripura government last hiked the salaries and pensions for its employees and pension holders in 2009.