'We expect the Reserve Bank of India to deliver a 25 bps rate cut in April to support growth.'
A new benefit of aggregate two years of paid leave that central government's women employees may avail to take care of their minor children will be limited to only the first two children and not for the third or fourth child, the government clarified through a notification
'We need to look beyond the current approach'.
The reason for the largesse, a first in the revenue department, is on account of direct and indirect tax collections exceeding the target (Budget estimate) for 2006-07. Total revenue collections stood at Rs 470,987 crore (Rs 4,709.87 billion) for the year, against the targeted Rs 439,952 crore (Rs 4399.52 billion).
India will grow at around 8 per cent this year and next, but the principal risk to this projection stems from the demand-led inflation that "would occur if the total Pay Commission award for government employees were to be paid out immediately," the Paris-based Organisation for Economic Cooperation has warned.Besides, "quick action to write off small farmers' debt would also add substantially to demand," the OECD indicated in its latest Economic Outlook.
The central government babus have been given a big hike in TA/DA (travel allowance/dearness allowance) as part of implementation of the Sixth Pay Commission, but it may be only illusory as ministries and departments will get no additional funds to foot their bills.
Income tax at source would be deducted only on 40 per cent of salary arrears to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations, government said on Tuesday.
The action was expected to affect the general efficiency levels of the Railways and could also eat into its profit margins estimated at a minimum loss of around 20 per cent margins compared to last year, claimed IRPOF. It, however, clarified that the officers will not take any action that will cause inconvenience to the general public.
The Centre was mulling more incentives for paramilitary personnel, especially those deployed in the border areas, and bring parity among all the forces in terms of pay and other perks
Vegetable prices which had witnessed a 21.16 per cent contraction in June, shot up by 21.95 per cent in July.
There are about 50 lakh (5 million) Central government employees.
Two Central Board of Excise and Customs staffers, Raman and Suresh, based in Trichy, Tamil Nadu, have set up a Web site based on the 6th Pay Commission recommendations and dedicated exclusively to government employees.
The larger virtue of maintaining fiscal credibility should not be unduly diluted by quibbles on the fiscal math, says Sajjid Chinoy.
'On the tax front, most of the Budget proposals are sensible'.
The strike is to protest against the airline companies' decision to stop paying commission to agencies in return for travel bookings from November 1.
The Defence sector is unhappy with the Sixth Pay Commission. The points of discontent include the fact that the Military Service Pay will only begin from the date of acceptance of the award possibly 3 months from now even as their civilian counterparts will get salary arrears from January 2006 onwards. Defence officers want to be compensated for the interim period vis--vis their civilian colleagues. They are also unhappy with the quantification of arduous service conditions.
The over 1.6 million employees of central public sector companies are demanding a salary increase of over 100 per cent, saying the average 40 per cent raise recommended by the Sixth Pay Commission for government employees is not enough. Salaries of public sector workers were last revised in 1997 and were scheduled for the next revision on January 1, 2007. The average gross monthly salary an ONGC executive earns today is between Rs 40,000 and Rs 50,000.
In a liberal proposal, the Sixth Central Pay Commission has recommended full pension benefit to government employees after 20 years of service, as against the existing 33 years. The hike in gratuity limit to Rs 10 lakh, exclusion of the earned leave encashed while in service from the overall limit, clubbing of earned leave and half-day pay leave for encashment and higher pension to octogenarians are the other liberal steps suggested by the commission.
In far-reaching reform measures to the salary structure of an estimated 4.5 million central government employees, the sixth Pay Commission report submitted to the finance ministry today recommended an across-the-board effective salary hike of about 28 per cent, performance-linked increments, fewer holidays and a new medical insurance scheme.
The Sixth Pay Commission on Monday recommended an increase in the salary of chairpersons of regulators, including Sebi, Trai and Irda, to up to Rs 300,000 per month and delink them from government salaries, a move to attract expertise from outside the government. Those appointed as members through the revised process should be paid a consolidated salary of Rs 1,50,000 per month, while the chairperson may be paid Rs 2,00,000 per month, in case a car and house are provided.
Officers of the elite Indian Administrative Service (IAS) want their pay scales to be determined on the basis of prevailing market rates. However, they are not ready to give up the substantial perks they enjoy, like palatial bungalows in city centres, number of attendants, guards, drivers and other assorted facilities.
The salary hike for government employees is likely to put an additional burden of Rs 24,000 crore on the state excheque.
"The main risk stems from the uncertainty surrounding the outcome of the south west monsoon in view of the rising probability of an El Nio event around July-August, and its implications for food inflation," RBI said, as it kept the status quo on key interest rate for the third time in a row.
The revised salaries of central government employees are likely to be paid from July 1, 2016.
The repo or short term lending rate remains unchanged at 6.75 per cent and the reverse repo rate at 7.75 per cent.
His statement comes in the wake of the defence forces' signal to its 1.5 million personnel on the 'anomalies' in the CPC, asking them to 'be patient in the larger interest of the services', which was seen as an act of defiance of the Cabinet decision to implement revised pay scales from September 1.
A bonanza is in the offing for the senior ranks as the Defence Ministry has cleared proposals for creating more than 110 posts of Generals.
'The Budget that Mr Jaitley will present on February 29 will be crucial.'
Being mandatory, these recommendations will have to be immediately built into the Budget for 2015-16.
Capex for next year expected to be up 25% to Rs 3 lakh crore
The minimum wage of Rs 80, which is applicable to central public sector undertakings, will see a 30 to 40 per cent jump in a single year once the changes are notified. The decision to hike the minimum wage level was taken by the Central Advisory Board at its meeting chaired by Minister for Labour and Employment Oscar Fernandes last week. The National Floor Level Minimum Wage of Rs 80 is likely to cross Rs 100 once the notification is issued.
Resources alone will not make the Indian armed forces the envy of its adversaries. It is the policy direction that is set by the military leadership and the quality of training imparted to its manpower that will make the difference. The debate on the wide-ranging changes that India's defence set-up needs should have been initiated long back by the armed forces themselves.
Despite the government's efforts to control prices, inflation continues to rise and is now at its highest in over thirteen years, as prices of pulses, spices, eggs, fish and meat among other things continued to rise.
In April, RBI had projected retail inflation to be around 5 per cent.
The Sixth Pay Commission on Monday submitted its report to the government presumably recommending a 40 per cent hike in salary for the central government employees. The commission, headed by Justice B N Srikrishna, submitted its report to Finance Minister P Chidambaram on Monday morning.
Now, in many cases, they give no old jewellery but the bills they get show gold as provided by them, the jeweller's making charge and the GST on that.
'What is bank recapitalisation? When the rich take loans and do not return and the government returns that money to the banks.' 'What is restructuring 5:25 scheme? The government says don't return now, just tell us you will return after five years.' 'Why don't we apply these schemes to farmers?' 'I want to increase the power of farmers to blackmail the government as everyone in the country has the power to blackmail.'
The government on May 17 formed a five-member committee.
"I urge the PM once again: soldiers should not have to struggle to claim what is their due. OROP must be implemented in a meaningful way! My heartfelt condolences to the family of Subedar Ram Kishan Grewal. Extremely sad to learn of his death," the Congress vice president said.
''Even without major reforms, with a business as usual scenario, and with current inflation trends, we should be clocking around 11 to 12 per cent nominal growth.' 'That is not happening and is a source of worry,' Rathin Roy tells Arup Roychoudhury.
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