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Saturday 21 March 2015
Sunday 8 March 2015
Friday 6 March 2015
7th CPC to submit its report in October,2015
After the recommendations of the Fourteenth Finance Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union finance ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year.
The SPC will submit its report by October 2015.
“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday.
The Union Budget reduced the plan expenditure for the first time in many years by Rs.2,657 crore to Rs.4.7 trillion in 2015-16 from the revised estimate of 2014-15, as the centre shared an additional Rs.1.86 trillion with states. The Finance Commission has raised the untied share of states in net central taxes to 42% from 32%.
The tight fiscal situation forced the government to revise its fiscal consolidation road map and set a less ambitious fiscal deficit target of 3.9% of the gross domestic product (GDP) for 2015-16 against the earlier target of 3.6% set in last year’s budget.
The fiscal deficit of 4.1% for 2014-15 was also achieved through a sharp reduction in plan expenditure up to Rs.1.1 trillion. Finance minister Arun Jaitley in his budget speech said he had deferred the 3% fiscal deficit target to fiscal 2017-18 from 2016-17.
The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the SPC is likely to seek extension till October.
The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.
As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth Finance Commission estimates.
“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the Finance Commission said.
The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said.
The FFC said that while the finance ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years.
However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the Finance Commission.
A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th Finance Commission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added.
N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added.
The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments.
The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said.
The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.
Source: Livemint
Status of implementation of the biometric attendance system for CG employees
The Government has decided to use an AADHAR Enabled Bio-metric Attendance System (AEBAS) in all offices of the Central Government, including attached / sub-ordinate Offices, in India. There is no change in the instructions relating to office hours, late attendance etc. Biometric attendance system is only an enabling platform.
As per the available information, there is a difference between the number of registered employees and number of employees marking their attendance. This Department has issued fresh instructions to all Ministries that necessary directions may be issued to all employees to mark their attendance in the Biometric Attendance Portal on regular basis.
As per the available information, the present status of implementation of the biometric attendance system is as under:
| Sr. No | Type of Organizations | No of organizations where employees are marking their attendance | No of organizations where employees are registered but not started marking their attendance | No of organizations on boarded but yet to complete formalities for employees registration | Total |
| 1 | Central Government Organizations in Delhi | 293 | 67 | 129 | 489 |
| 2 | Central Government Organizations outside Delhi | 76 | 211 | 661 | 948 |
| Total | 369 | 278 | 790 | 1437 |
This was stated by the Minister of State for Personnel, Public Grievances and Pensions and Minister of State in Prime Minister’s office Dr. Jitendra Singh in a written reply to a question by Shri Muthamsetti Srinivasa Rao (Avanthi) in the Lok Sabha yesterday.
No change in personal Income Tax Rates in near Term: Revenue Secretary
Personal income tax rates will not be changed in the near term even as peak corporate tax rate will be cut by 5 per cent over a four year period beginning 2016-17, Revenue Secretary said. Finance Minister Arun Jaitley had in his Budget for 2015-16 proposed last week to cut peak corporate tax rate from 30 to 25 per cent in four years beginning next fiscal. He however left personal income tax rates unchanged even though some exemptions limits have been raised.
“Personal income tax at 30 per cent is very much comparable to the international rates and you can not reduce 30 per cent alone, without reducing 20 per cent and 10 per cent rate,” Revenue Secretary Shaktikanta Das told PTI in an interview. “The peak rate of 30 per cent is very reasonable rate even in international standard. This we would like to continue over medium term,” he added.
At present, the peak rate of 30 per cent applies on annual income of individuals above Rs 10 lakhs; 20 per cent on income between Rs 5 lakh and Rs 10 lakh; and 10 per cent on income less than Rs 5 lakh. On whether the government intends to keep these rates unchanged over the next 3-4 years, he said. “Yes that is the intent.” Asked why the government chose to announce cut in corporate tax rates, Das said: “In order to attract investment our corporate tax rate should be competitive to Asean countries (Association of South East Asian Nations).”
He added, “On the taxation side, it was found that our corporate tax rates were higher than the rates which were prevalent in major Asean countries. Our rates have to be competitive. “Therefore Finance Minister had announced that over a period of 5 years we will reduce corporate tax from 30 per cent to 25 per cent and in doing so, exemptions will also be eliminated in the phased manner.” The reduction will happen “evenly” every year beginning 2016-17, Das said, adding that the exact rates and other details will be announced in the next Budget.
PTI
Friday 27 February 2015
Thursday 26 February 2015
Wednesday 25 February 2015
Tuesday 24 February 2015
Lokayuktas Act 2013 – All Departments to start preparatory steps for filing of returns
DoPT issues fresh instructions to all Ministries on Declaration of Assets and Liabilities by CG Employees under Lokpal and
F. No. 11013/3/2014-Estt.(A)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Establishment Division
North Block, New Delhi — 110001
Dated February 17, 2015
OFFICE MEMORANDUM
Subject: Central Civil Services (Conduct) Rules, 1964 and The Lokpal and Lokayuktas Act, 2013 — Submission of declaration of assets and liabilities by the public servants for each year — regarding
The undersigned is directed to refer to this Department’ OM of even no. dated /16.01.2015 clarifying the provisions relating to submission of declaration of assets and liabilities by the public servants. As per this clarification, all Government Servants have been advised that:
(i) The annual Immovable Property Return (IPR), as on 31.12.2014, under the existing CCS(Conduct) Rules, 1964 is required to be filed on or before 31.01.2015;
(ii) The first return under the Lokpal and Lokayuktas Act, 2013 (as on 01.08.2014) should be filed on or before 30.04.2015; and
(iii) The next annual return under the Lokpal and Lokayuktas Act, 2013, for the year ending 31.03.2015, should be filed on or before 31.07.2015.
2. The Secretaries of all Ministries/ Departments have also been requested that all concerned may be suitably advised to file the IPRs and the return under the Lokpal Act as per the dates indicated above. A compliance report in respect of the IPRs filed by Group ‘A’ Officers of the Central Civil Services, as on 31.01.2015, has also been requested by 30.04.2015. It has also been requested that similar action may be taken by the authorities controlling services not covered by the Central Civil Services (Conduct) Rules, 1964.
3. In this regard it has been directed that all preparatory steps for the purpose of filing returns under the Lokpal and Lokayuktas Act, 2013, be put in place. An online system for filling the annual declarations of assets and liabilities by the public servants, as in PRISM (Property Related Information System) for IAS officers developed by NIC, may be adopted.
4. The Cadre Controlling Authorities are accordingly requested to please take immediate steps for putting in place all preparatory steps.
5. Hindi version will follow.
sd/-
(Mamta Kundra)
Joint Secretary (Establishment)
Budget 2015 expectations on Income Tax Front – Assocham Survey report
A survey carried out by industry body Assocham has found that a majority of salaried employees want Finance Minister Arun Jaitley to increase the income tax exemption in the forthcoming Budget.
A hike in income tax exemption from Rs. 2.5 lakh to Rs. 3 lakh will lead to savings of up to Rs. 5,000 for those who fall in the Rs. 2.5 lakh to Rs. 5 lakh tax bracket. Those in the Rs. 5 lakh to Rs. 10 lakh tax bracket will save up to Rs. 10,000, while those in the highest tax bracket can save up to Rs. 15,000.
Any increase in exemption in income tax would leave more money in the hands of people and will increase their purchasing power, Assocham said. If Mr Jaitley hikes income tax exemption limit, it will be for the second time in two years that salaried employees will get a relief on taxes.
The other big expectation is about exemption on housing loans. 78 per cent of those surveyed want interest exemption on home loans to go up to Rs. 5 lakh from Rs. 2 lakh. Property prices in the country have gone up sharply over the years and many individuals have to pay large amounts as interest for home loans. Exemption on interest on home loan was hiked by Rs. 50,000 to Rs. 2 lakh in the previous Budget.
A large number of respondents in the survey also voted for hiking exemption limit under section 80C of the Income Tax Act; the section makes investments worth Rs. 1.5 lakh on saving instruments such as fixed deposits, national saving certificates and public provident funds exempt from taxes. “Hike in exemption limits will boost the savings rate in the Indian economy to 35 per cent of GDP from below 30 per cent currently,” said Assocham secretary general D S Rawat.
88 per cent of respondents want the government to reduce the record-high duty on gold import. Import duty on gold was hiked to 10 per cent in 2013 when the economy was struggling with a high current account deficit and volatile rupee. Nearly 82 per cent of the salaried class expects a separate deduction of Rs. 50,000 for the payment towards annuity or pension plans. Deduction of the amount paid towards annuity plans u/s 80CCC and NPS u/s 80CCD come under the threshold limit of section 80C currently.
Around 55 per cent of the survey respondents were between 25 and 29 year-old; 26 per cent fell between 30 and 39 years; 16 per cent were between 40 and 49 years. The survey was carried out among employees from 18 broad sectors, with maximum share contributed by employees from IT/ITes sector (17 per cent). It was conducted across Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun, etc. About 500 salaried employees from the different sectors were covered by the survey from each city on an average.
Source: NDTV
Thursday 19 February 2015
Employee can’t be kept under suspension for over 3 Months: Hon’ble Supreme Court
Hon'ble Supreme Court has prescribed that a government employee cannot be kept under suspension for over 90 days in the absence of a charge sheet against him as such persons “suffer the ignominy of insinuations, the scorn of society and the derision of their Department”. Observing that “protracted period of suspension of delinquent government employee has become a norm”, a bench of Justices Vikramajit Sen and C Nagappan said suspension, specially preceding formulation of charges, was essentially transitory or temporary in nature and must be of short duration.
“If it is for an indeterminate period or if its renewal is not based on sound reasoning contemporaneously available on the record, this would render it punitive in nature,” it said. Dwelling on the issue, the bench observed that “the suspended person suffering the ignominy of insinuations, the scorn of society and the derision of his Department, has to endure this excruciation even before he is formally charged with some misdemeanour, indiscretion or offence.
“His torment is his knowledge that if and when charged, it will inexorably take an inordinate time for the inquisition or inquiry to come to its culmination, that is to determine his innocence or iniquity.
“Much too often this has now become an accompaniment to retirement. Indubitably the sophist will nimbly counter that our Constitution does not explicitly guarantee either the right to a speedy trial even to the incarcerated, or assume the presumption of innocence to the accused,” the bench said.
Accordingly, it directed that “the currency of a suspension order should not extend beyond three months if within this period the Memorandum of Charges/ Charge sheet is not served on delinquent officer/employee; if Memorandum of Charges/Charge sheet is served a reasoned order must be passed for the extension of the suspension.” The apex court’s judgement came on a petition by defence estate officer Ajay Kumar Choudhary, who was suspended in 2011 for allegedly issuing wrong no-objection certificates for the use of approximately four acres of land in Kashmir.
Based on the findings given in the verdict, it said the officer can challenge his continued suspension.
“So far as the facts of the present case are concerned, the Appellant has now been served with a Charge sheet and therefore, these directions may not be relevant to him any longer. “However, if the Appellant is so advised he may challenge his continued suspension in any manner known to law, and this action of the Respondents will be subject to judicial review,” the bench said.
PTI
One Rank One Pension – OROP is getting final Shape – Large provision to be made in the Budget 2015
Achchey Din seems likely to dawn on the armed forces, or ex-personnel in particular. The government is giving final shape to their long standing demand of adopting One-Rank One-Pension (OROP).
Bureaucrats are currently burning midnight oil to pore over the fine print of at least four options to implement the OROP scheme. A source in government, aware of the developments, says a decision is expected soon and a large provision in the Budget, or soon after.
“We are very hopeful that the long overdue injustice to the armed forces will be reversed in this budget,” says Maj Gen Satbir Singh (Retd) who leads the IESM or Indian Ex-Servicemen Movement, which lobbied intensely for OROP since 2008. “Both UPA and NDA have agreed to our OROP so we see no reason that it will be held back now,” he says.
For 40 years the retirees, now numbering three million, have been bristling under what they perceive as “neglect and humiliation” by political parties and successive governments. Its extreme manifestation, from their perspective, was the denial of OROP. Lack of empirical data on the cost of this pension, plus political reluctance of the parties fuelled much of the denial and delay. The former military staff launched public agitations to make their case, often embarrassing the government.
Thursday 29 January 2015
FM Asks CBEC Officials For Quick Decisions To Ensure Stability
New Delhi: Ahead of the Budget, Finance Minister Arun Jaitley today asked CBEC officials for the need for tax reforms and quick decision making to ensure stability in policy regime.
The Minister also asked the Central Board of Excise and Customs ( CBEC) officials to maintain certain level of civility with assessees but to take to task the evaders and avoiders.
“Those who are liable to pay must pay…no evader or avoider must be allowed to go scot-free. At the same time, the levels of civility that we require in dealing with assessees will have to be very logical, very cogent,” he said at an the Investiture Ceremony to honour the officers of Customs and Central Excise for their excellent performance and International Customs Day function organised here today by CBEC.
“In order to make best use of this opportunity, we have to address two major concerns that is quick decision making and stability in policy matters, and reforms in tax structure and administration,” he said.
“There is need for change both in attitude and mindset towards investors’ and assesses. We need to have a non-adversarial tax administration which is both investors’ and assesses’ friendly,” he said.
Jaitley, who is scheduled to present the Budget in Lok Sabha on February 28, expressed confidence that the fiscal deficit target of 4.1 per cent of the GDP for the current fiscal would be met.
“Even though the revenues have been challenging due to slow manufacturing industry, now, it is turning around and it looks like we will be able to meet our fiscal targets,” he said.
Revenue collections which was affected due to low manufacturing in the last 2-3 years are also turning around. Forex reserves are good and Current Account Deficit (CAD) position is much better, he added.
Current account deficit stood at USD 10.1 billion or 2.1 per cent of GDP in July-September quarter of this fiscal, up from 1.2 per cent during the year ago period due to rising gold imports.
The current account deficit (CAD) is the net difference between inflows and outflows of foreign currencies.
Stating that the last one week had been a great learning for him, Jaitley said, “The sense I got in last few days is that ordinarily everything is going well with India.
“From depressing slowdown in last last two three years, suddenly our growth rates are likely to look up.”
On the other hand, competing economies globally have not been so good.
“Brazil faces a challenge, South Africa faces challenge. Europe is still struggling to come out of slowdown. China which has maintained a growth rate of over 9 per cent for over 3 decades is looking at new normal,” he said.
The Finance Minister said that Indian currency was among the two global currencies which withstood the might of dollar in recent times.
Tuesday 27 January 2015
BENEFITS FOR CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME 1980
No.7(1)/EV/2014
Government of India
Ministry of Finance
Department of Expenditure
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 22 January 2015
OFFICE MEMORANDUM
Sub: Central Government Employees Group insurance Scheme 1980 — Tables of Benefits for the savings fund for the period from 01.01.2015 to 31.12.2015.
The undersigned is directed to refer to this Ministry’s O.M. No.7 (1)/E V/2013 dated 8th January, 2014 forwarding therewith Tables of Benefits under CGEGIS for the year 2014. New Tables of Benefits for the savings fund of the Scheme based on a subscription of Rs.10 per month from 1.1.1982 to 31.12.1989 and Rs. 15 per month we.f. 1.1.1990 onwards have been prepared for the year 2015 and a copy of the table is enclosed. Another Table of Benefits for the savings fund based on a subscription of Rs. 10 per month for those employees who had opted out of the revised rates of subscription w.e.f. 1.1.1990 have also been drawn up for the year 2015 and a copy of that table is also enclosed. The amounts in the Tables have been worked out on the basis of interest @ 10% per annum(compounded quarterly) for the period from 1.1.1982 to 31.12.1982. 11% per annum (compounded quarterly) w.e.f. 1.i.1983 to 31.12.1986, 12% per annum(compounded quarterly) w.e.f. 1.1.1987 to 31.12.2000, 11% per Annum (compounded quarterly) w.e.f. 1.1.2001 to 31.12.2001, 9.5% per annum(compounded quarterly) w.e.f. 1.1.2002 to 31.12.2002, 9.0% per annum(compounded quarterly) w.e.f. 1.1.2003 to 31.12.2003.8% per annum (compounded quarterly) w.e.f. 1.1.2004 1030.11.2011. 8.6% per annum (compounded quarterly) w.e.f. 1.12.2011 to 31.03.2012, 8.8% per annum (compounded quarterly) w.e.f. 1.04.2012 to 31.03.2013 and 8.7 % per annum (compounded quarterly) w.e.f. 01.04.2013 onwards. The mortality rate under the Scheme has been taken as 3.75 per thousand per annum up to 31.12.1987 and 3.60 per thousand per annum thereafter in both the cases. While calculating the amount il has been assumed that the subscription has been recovered or will be recovered from the salary of the month in which a member ceases to be in service failing which it should be deducted from accumulated amounts payable.
2. In its application to the employees of Indian Audit and Accounts Department this Office Memorandum issues in consultation with the Comptroller and Auditor General of India.
(VIJAY KUMAR SINGH)
DIRECTOR
DIRECTOR
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