The Seventh Pay Commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.
The allowance committee is supposed to examine and make recommendations as to whether any changes in the recommendations of the 7th central pay commission related to allowances are warranted and if so in what form.
There has also been a 90 per cent decline in direct recruitment of reserved category candidates in the central government jobs in the year 2015 as compared to 2013, data presented in the Lok Sabha showed.
Arun Jaitley said all other taxes like entry tax in states will be removed once the GST is in place.
Introducing four bills to give effect to the Goods and Services Tax (GST), Mr Jaitley said the legislations will have to be passed by Parliament and one by each of the state assemblies to turn India into one market with a single tax rate.
Key risk for price rise is the 'deficient' monsoon, that could lead to a pick-up in inflation expectations.
The goods and services tax will replace more than a dozen levies that were fracturing the world's fastest-growing big economy, unifying India for the first time into a common market with more than 1 billion consumers.
"Now, you either meet the target or you will face the prospects of the fund flow drying up," a senior NITI Aayog official said.
Consolidation of the country's public-sector banks is seen as a final step in rebuilding a financial system capable of underwriting credit growth and job-creating investment in Asia's third-largest economy.
The committee on allowances was constituted through a government order dated July 22, 2016.
The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities.
Under the GST Constitutional Amendment Act, concurrent powers to levy GST has been provided to both the Centre and the states.
Apart from the challenge of getting inflation down to 4 per cent which was flagged by RBI Governor Urjit Patel at the last review, one of the biggest factors influencing the analysts seems to be the shift in the policy stance to neutral.
The Central Board of Excise and Customs (CBEC) is presently the top policy-making forum for indirect taxes in the country.
Earlier this month, the government had clarified that the allowance committee on 7th pay commission has not yet submitted its report.
Government expects to get parliament's nod for the four bills in the current session, scheduled to end on April 12.