|
|
Article: Finmin not to shoulder EPF interest burden.
- Article from:
- Economic Times (New Delhi, India)
- Article date:
- May 25, 2005
CopyrightCOPYRIGHT 2005 The Economic Times. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Byline: Subhomoy Bhattacharjee
May 25--NEW DELHI -- The Union finance ministry will not provide any subsidy to part-fund a higher interest obligation on the Employees Provident Fund (EPF) for '04-05.
Although the interim rate of interest paid on EPF deposits was fixed at 8.5 percent, the labour ministry is pitching for a higher interest rate of 9.5 percent. This would entail an extra burden of Rs 927 crore as the income of the EPFO is not sufficient to support the higher payout.
Finance ministry sources said if they agree to the labour ministry's demand, there would be no basis to deny a similar rate of interest for small saving schemes, which ...