Tuesday, October 25, 2011
WISH YOU ALL HAPPY DIPAVALI !!!!!!!!!!!
MAY THIS DIWALI CELEBRATIONS ENDOW YOU WITH OPULENCE AND PROSPERITY, HAPPINESS COMES AT YOUR STEPS. WISHING MANY BRIGHT FUTURE IN YOUR LIFE. SHUBH DIWALITOYOU ALL AND TO YOUR FAMILY.
- S.P.KULKARNI, PRESIDENT
Sunday, October 23, 2011
EVENTFUL SESSION OF CENTRAL WORKING COMMITTEE - 20th and 21st OCTOBER 2011, NEW DELHI
The first meeting of Central working committee of AIPSBCOEA was held on 20th and 21st OCTOBER in the Central Head quarters of NFPE, North avenue, New Delhi under the chairmanship of Com . S.P.Kulkarni . Com . M.Krishnan Secretary General NFPE inaugurated the session.
During inaugural speech, our leader explained the ongoing developments in the 5th July strike demands, cadre restructure,march to parliament on PFRDA Bill and SBCO subjects referred to departmental council of JCM departmental council. Com.R.N.Parasar Asst Secretary General NFPE ,Com. Girirajsingh General Secretary R III , Com. Ishwarsingh Dabas G/s P IV, Com . P.Suresh G/s R IV. Com. R.Sivanarayana Deputy General Secretary, P III, Com.Balwindar Singh Finanacial secretary P III , Com. Nagabushanam President All India Casual labours and Contingent Employees Assn felicitated CWC meeting.
Com.S.Appanraj General Secretary submitted the report for the period from January to September 2011 covering the organizational events of our association, federation and confederation of central govt. employees.
Com. Virendra Tiwari Deputy General Secretary initiated the organizational review. Majority of circle secretaries and CHQ office bearers took part in the deliberations and elaborately expressed the problems prevailing in their circles. It was pointed out by all that Irrational recovery under contributory negligence cases have been on the increasing side in all circles. Change of transfer liability within division is overwhelmingly welcomed by all. Advantageous cadre restructure and restoration of delegation of administrative powers to regional heads were insisted by CWC members.
And also, valuable suggestions for improvement of functioning of our association were contributed. Guidelines have been issued to formation of circle unions in Jammu and Kashmir, Uttarkand,Uttiranchal,Jharkand and Chattisgarh and to increase the membership of our association with target of winning the status of first union.
Next session of CWC will be held in Punjab. Com. Baldev Raj Sharma Circle Secretary Punjab Circle pleased to volunteer in this regard.
Resolutions were passed out of view points and suggestions made in the CWC unanimously .
Let us resolve to win over our demands through organizational spirit and great enthusiasm.
S.P. KULKARNI President
S.P. KULKARNI President
|The details of the CHQ/Circle office bearers attended CWC are as under.|
|1||S.P. Kulkarni President All India union Supervisor Kolahpur HO ( C/S ) Maharashtra||9767687485|
|2||S Appanraj General Secretary Supervisor Madurai H.O ( C/S ) Tamilnadu||9442029069|
|3||Asitdas Working President PA SBCO Park street H.O (C/S ) West Bengal||9433443221|
|4||Virendra Tiwari Dy General Secretary PA SBCO BBK HO Uttarpradesh||9839195933|
|5||Nirmalkumar Bajpayee Asst.Gen.Secretary PA SBCO Hajipur HO Bihar||9431602538|
|6||Atulkumar Srivatsav Org Secretary PA SBCO, Unnao HO U.P||9450728093|
|7||Subbash Jaiswal Asst.Gen.Secretary Damoh HO ( C/S ) Madhyaprdesh||9827607454|
|8||B.K.Valand Vice President O/O PMG Rajkot (C/S ) Gujarat||9426245285|
|9||Baldev Raj Sharma Vice President PA SBCO Ferozepur H.O ( C/S ) Punjab||9417929222|
|10||M.K.Mohanan Asst.Gen Secretary Supervisor Tiruk H.O Kerala.||9048626492|
|11||V.K.Jain Asst.Gen.Secretary PA SBCO Dhalpur H.O (C/S ) Rajasthan||9414348915|
|12||J.S.Bajpai Circle Secretary Unnao H.O Uttarpradesh.||9473999584|
|13||Bal krishna Singh Circle Secretary supervisor Modhari.H.S Bihar.||9431494271|
|14||C.B.Bharsar Supervisor SBCO Gujarat.||9723760822|
|15||J.S.Parnab circle president Gandhinagar H.O Gujarat.||9898472414|
|16||S.M.Brahmbatt Circle vice president Anand H.O Gujarat.||9427312251|
|17||S.K.Namela Circle ACS Satna H.O Madhyapradesh .||9827306191|
|18||J.S. Walia Circle President Bhatinda HO Punjab.||9417243737|
Sunday, October 16, 2011
The Government wants to borrow more in the second-half of this financial year. Thus, fiscal slippage has come to the centre stage along with the discussions on controlling inflation. Spiraling and unabatedly continuing inflation is a concern. But fiscal indiscipline will very much exacerbate inflation.
The reasons the government cited for this was due to lower-than-expected cash surplus at the start of the financial year and also on account of revenue shortfall under the National Small Savings Fund (NSSF). Even though the government indicated that its fiscal deficit calculations remain unchanged, one of the major sources of the budget deficit — considered at the time of the last Union Budget — was small savings schemes of the government. A report of the Finance Ministry released recently said that net small savings deposits turned negative in the first quarter of 2011-12 and it has impacted government's cash management.
Interestingly, interest rates of many savings schemes offered by the government were static since 2003, while bank deposit rates moved up many folds. Various types of small savings schemes offer interest rates between 3.5 per cent and 8.40 per cent. The only scheme which offers a higher interest rate is the 5-year Senior Citizens' Savings Scheme (SCSS) which offers 9 per cent. However, for senior citizens, many public sector banks are offering much higher rates, adding another 25-50 basis points.
Further the government's borrowing programme surprised markets. The government announced its borrowing programme for the second-half of the current fiscal which was higher by Rs.52,900 crore over the market expectations. Yields of the benchmark 10-year Government Securities (G-Sec) had been in the range of 8.28-8.35 per cent till recently. After the announcement of higher borrowing programme by the government, the yields of the 10-year government bonds have shot up by 10 basis points to close at 8.44 per cent in the previous week. Last week, it moved up further to close at 8.55 per cent against 7.93 per cent a year ago. The 5-year G-Sec also was at 8.33 per cent last Friday against 7.75 per cent a year ago.
The deposit rates now hover around 8.50-9.25 per cent as compared to 7-8 per cent a year ago. However, some banks offer higher fixed deposit rates which are floating between 9.50 per cent and 10.50 per cent for various maturities.
Prime Lending Rates
The Prime Lending Rates (PLRs) charged by various banks remain almost static as compared to one year ago at 11-15.75 per cent. The rate for savings bank account had also been revised by the Reserve Bank of India from 3.50 per cent to 4 per cent in May 2011, when it announced Monetary Policy for 2011-12. However, the gap between savings bank rate and other bank rates have been widened significantly. In tandem with rising interest rates, Call Money rate, which is an overnight rate, has also moved up to 8.05 per cent from 5.75 per cent around the same period in 2010.
Meanwhile, headline inflation in August accelerated to 9.78 per cent, its highest in more than a year, from 9.22 per cent in July.
Weekly food inflation as on September 24 accelerated to 9.41 per cent from 9.31 per cent in the previous week. Fuel price inflation moved up to 14.69 per cent as per the latest data of the government. Clearly, the high interest rates being offered by banks make people move out of the small savings schemes. The Shyamala Gopinath Committee on Comprehensive Review of National Small Savings Fund recommended to the government a positive spread of 25 basis points, vis-à-vis government securities of similar maturities with a few exceptions, "taking into account the interests of small savers, and in view of the absence of social security among the unorganised sections of the society, as also the liquidity augmenting measures for various instruments". Exceptions are recommended only in the case of 6-year National Savings Certificate (NSC) and SCSS. The Committee notes that NSC cannot be withdrawn before maturity, which affects its liquidity. Keeping in view the longish tenor of the 6-year NSC and the absence of liquidity, the Committee favours a higher illiquidity premium of 50 basis points (instead of 25 basis points as in the case of other instruments). As regards SCSS where the rate of interest is currently fixed at 9 per cent, the Committee recommended a spread of 100 basis points over and above the secondary market yield of government securities of similar maturity.
The Committee, which had given its report in June to the government agrees with the recommendations of the Reddy (2001) and Rakesh Mohan (2004) committees that the secondary market yields on Central Government securities of comparable maturities should be the benchmark for various small savings instruments (other than savings bank deposits, which do not have a fixed maturity). The Shyamala Gopinath Committee also recommended various measures to improve liquidity, flexibility in revising rates and maturities as well as making schemes more attractive for small savers.
The government's apathy towards small savings schemes is clear. If the authorities make the small savings schemes more attractive, more funds will come through this government channel. The government had borrowed Rs.2.50-lakh crore in the first-half of 2011-12 out of the announced dated borrowing programme for the fiscal at Rs.4.17-lakh crore. Taking these figures into consideration, the market was expecting the Reserve Bank of India to announce a dated borrowing programme of Rs.1.67-lakh crore for the second-half of the current fiscal. But the government announced a dated borrowing programme of Rs.2.20-lakh crore, or around Rs.52,900 crore in excess of the anticipated amount. If small savings collections do not improve by the financial year end, the government has to resort to another bout of borrowing. This will make the central bank's position further difficult while shaping its monetary stand for the year 2012-13.
The Hindu, Dt. 10.10.2011
Monday, October 10, 2011
PPF INTEREST RATE ENHANCED :-
Finance ministry pushes for increase in PPF, post office rates:
NEW DELHI: Faced with a cash crunch, the finance ministry is moving a proposal to increase interest rates on small savings schemes such as Public Provident Fund and post office deposits but politics may play spoilsport.
Official sources told TOI that finance minister Pranab Mukherjee will decide on the proposal over the next few days as small savings instruments have lost out to bank deposits that earn higher interest. As a result, the government has been forced to borrow Rs 53,000 crore more from the market by issuing bonds, a move that can increase interest rates further and also upset budgetary calculations.
If Mukherjee approves an increase in interest rates on small savings, your PPF will fetch you at least 8.2%, instead of 8% now, while senior citizens can hope to earn around 9%. In addition, individuals will be permitted to park Rs 1 lakh in PPF accounts instead of Rs 70,000 at present. Similarly, post office deposits will fetch 50-70 basis points higher (100 basis points = one percentage point).
But politics over two schemes are holding back a green light from the finance minister. Sources said the finance ministry has received several representations from individuals urging not to abolish the Kisan Vikas Patra (KVP), while nearly 5 lakh agents have opposed the move to cut the commission on Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) to 1% from 4%.
Officials in the tax department have complained that KVP has become one of the biggest instruments of money laundering, a concern which was even shared by a high-level committee headed by former RBI deputy governor Shyamala Gopinath. In fact, maximum instances of misuse of KVP have been found around Amritsar, pointing to the possibility of Pakistani funds entering India. So, it hasn't come as a surprise that a significant number of petitions for the scheme's continuation have come from Punjab and Haryana.
"The ministry has received representations from various sections. They have demanded that KVP should not be discontinued as it is linked to farmers while the reduction in the commission for MPKBY scheme has been opposed on the ground that it will hurt the income of women agents in rural areas," a source, who did not wish to be identified, said.
Mukherjee faces another dilemma as MPKBY was started during former prime minister Indira Gandhi's tenure which raises fears of criticism from within the party, especially because women agents will be affected. It's a different matter, however, that the agency is in the name of a woman but the person hawking the scheme is either the agent's husband or another family member.
It is likely that the finance minister, the government's key troubleshooter, will settle for reducing commission to around 2%, which will also ensure that investors do not lose out on returns as commission eats up a certain portion of the returns every time funds are deposited.
An expert panel headed by Gopinath had recommended moving from an administered price regime to a market-linked interest rate system for small savings schemes that would translate into higher returns for now.
It has recommended closure of only one existing scheme - KVP -- while recommending continuation of all other schemes with some modifications. The committee also recommended that the investment ceiling in the popular Public Provident Fund scheme be raised to Rs 1 lakh from the current Rs 70,000.
Finance ministry officials said increase in the PPF investment limit would help garner about Rs 5,000 crore in the coming quarter if the small savings reform plans were implemented. This would also help the government tide over the tight fiscal situation and reduce prospects for any further increase in its market borrowings. The government has recently raised its borrowing against the backdrop of slowing revenues and less than expected receipts from disinvestment in state-run enterprises.
The government panel had said the continued popularity of both KVP and NSC among the urban population who are not all small savers could be prompted by an incentive to avoid tax. "As compared to NSC, KVP is more popular as it is a bearer-like certificate due to its ease of transfer. It also has an in-built liquidity due to the regulated premature closure facility offered in the scheme. In view of the recent developments on Anti Money Laundering/CFT front, the committee recommends that KVP should be discontinued," the report said.
The committee had also said that 4% commission under MPKBY was very high and was affecting the viability of the National Small Savings Fund. "The committee recognises that the RD scheme requires considerable effort on part of agents in mobilizing monthly deposits. However, 4% commission is distortionary and expensive. The committee recommends that this should be brought down to 1% in a phased manner in a period of three years with a 1% reduction every year," the report said.
Latest data shows investors are opting for bank deposits due to the increase in deposit rates. Between April and August 2011, retail investors withdrew nearly Rs 5,500 crore from small savings deposit schemes in post offices and certificates such as National Savings Certificate. Small savings schemes, most of which are exempt from tax, had attracted investment of over Rs 25,000 crore in the same period last year.
Source : The Times of India, October 10, 2011BY S.P.Kulkarni, President.
Monday, October 3, 2011
D.A. ORDERS ISSUED BY MINISTRY OF FINANCE
Subject: - Payment of Dearness Allowance to Central Government Employees - Revised Rates effective from 1.7.2011.
No. 1(14)/2011-E-II (B) dated 3rdOctober, 2011 (Ministry of Finance)
The undersigned is directed to refer to this Ministry's Office Memorandum No.1(2)/2011-E-II(B) dated 24th March, 2011 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced form the existing rate of 51% to 58% with effect from 1st July, 2011.
2. The provisions contained in paras 3, 4 and 5 of this Ministry's O.M. No.1(3)/2008-E-II (B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.
3. The additional instalment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.
4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Audit General of India.
to the Government of India
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