A significant rise in public sector wages will worsen the economy, a defiant statement by the Ministry of Finance said this week, even as surging inflation strengthens worker's call for a hike. With expenditure on compensation - made up of salaries, pensions, gratuities and social security transfers - absorbing 66 percent of tax revenue between January-September 2013, further growth in wages will crowd out investment in infrastructure and social programmes, and generate worse...