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President:GURU PRASAD Secretary: SURESH K Treasurer: GURURAJ ACHARYA

Sunday, 10 April 2016

Declaration of Holiday on 14th April, 2016 – Birthday of Dr. B. R. Ambedkar DOP ORDER

View the order


Consumer Price Index for Industrial Workers (CPI-IW) – February, 2016 and DA

The All-India CPI-IW for February, 2016 decreased by 2 points and pegged at 267 (two hundred and sixty seven). On 1-month percentage change, it decreased by (-) 0.74 per cent between January, 2016 and February, 2016 when compared with the decrease of (-) 0.39 per cent between the same two months a year ago.

The CPI is stable or declining from November  2015 

CPI as on July -15 is 263 Points

CPI as on  Aug -15 is 264 Points

CPI as on Sept -15 is 266 Points

CPI as on Oct -15  is 269 Points

CPI as on Nov -15 is  270 Points

CPI as on Dec-15 is 269 Points

 CPI as on Jan 2016 is 269 Points 
CPI as on Feb 2016 is  267 Points 

Expected  DA as on 1st July 2016 is 4% to 5% 

50 Percent Of 7th Pay Commission Arrears To Be Invested In Bond

 The central government is considering a proposal under which 50% of arrears of higher-income central government employees under the 7th Pay Commission will be compulsorily invested in bank capitalization bonds. The proceeds will be used to recapitalise banks without additional pressure on the fiscal.
Finance Minister Arun Jaitley
Finance Minister Arun Jaitley
While this will result in less cash in the hands of higher-income employees, as a sweetener they will get income tax rebate on the amount invested.
A finance ministry official confirmed that preliminary discussions around this proposal were held at a meeting on Thursday, but no decision on its implementation was taken. “The issue was discussed. We are looking at all options,” he said.
“The proposal entails that through a provision under Income Tax Act, tax rebate should be offered to all employees receiving extra salary income through pay commission in the year 2016-17 and 2017-18, provided the money is invested in the bond,” added the official.
The government will have to additionally shell out Rs 40,000-50,000 crore annually on account of implementation of the seventh pay commission recommendations with effect from January 1, 2016.
If this proposal is accepted, a portion of this money will be used to capitalize banks.
According to finance ministry estimates, state-run banks will require Rs 1.8 lakh crore of additional capital in the next four financial years, of which Rs 70,000 crore will be provided by the government.
The government has budgeted Rs 25,000 crore for bank capitalisation in the current fiscal. While the government has said it has made adequate provision in the Budget to cover the extra spending on account of the pay commission recommendations, analysts reckon it is not adequate and full implementation of award will make it difficult to achieve the fiscal deficit target of 3.5% of GDP.
“Increase in government employee wages and pension expenditure on account of seventh pay commission recommendations is not fully provided for in the Budget,” Morgan Stanley had said in a report.
The proposal currently under consideration gives the government the leeway to meet both its pay commission and bank capitalisation commitments without putting the fiscal deficit target under threat. Bonds will provide the exchequer some wriggle room. The payment will become due when bonds mature, leaving the government with only the interest payment liability in the current fiscal.
The flip side is that the proposed scheme could annoy government employees expecting a greater take-home pay. Hence the scheme has a tax exemption lollipop.
A second government official said this amount will be used to recapitalise banks through a special bank capitalisation fund that will invest in perpetual non-redeemable preference shares issued by banks. Banks will pay 5.1% dividend that is also proposed to be exempted from the dividend distribution tax. The fund will in turn pay 5% interest to government employees, retaining 0.1% as administrative charge.
“This interest income will also be tax free for government employees,” he said, which will increase the effective yield. The government will eventually pay back the amount in four equal investments after 8, 9, 10 and 11years, spreading the fiscal burden of repayment over that period. It will guarantee payment of 5% interest and repayment of deposits irrespective of whether the banks pay the dividend or not, the official added.

DA from January 2016 is 125% for Central Government Employees – Orders issued by Govt

No. 1/1/2016-E-II (B)
Government of India Ministry of Finance
Department of Expenditure
North Block, New Delhi,
Dated: 07.04.2016
Subject: Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 1.1.2016.
The undersigned is directed to refer to this Ministry’s Office Memorandum F.No. 1-3/2015-E-II (B) dated  23rd September, 2015 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 from the existing rate of 119 % to 125 % with effect from 1st Jan, 2016.
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 installment 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 ArmedForces 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 in consultation with the Comptroller and Auditor General of India.
Under Secretary to the Government of India