Delay in Decisions by a Govt that is advertising speedy decisions? No Funds??

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Saturday, 23 May 2015

Delay in Decisions by a Govt that is advertising speedy decisions? No Funds??

Quote “The issue over one rank one pension (OROP) scheme may not be resolved in the near future as Finance Minister Arun Jaitley on Firday said the ‘methodology of calculation’ was still being worked out in consultation with the Defence Ministry.” Asserting the government’s commitment towards implementing OROP, Jaitley said the Finance Ministry was in dialogue with the Defence Ministry on the methodology of calculation, hinting at no immediate resolution of the complicated issue” Unquote

[Source: Deccan Herald, Bangalore edition, Page 13, Saturday, 23 May 2015.] 

Just going back 21 months ...

The much reviled UPA Govt constituted a Cabinet Secretary (the same gentleman who is functioning in the same post in the present Govt) Committee vide orders dated 9^th July 2012 and amended on 12^th July 2012 to examine anomalies in pay, pension and allowances related to the Defence Forces. The Committee submitted its report in late August 2012.

PCDA (P) in the reviled UPA regime issued the Minimum Guaranteed Pensions for retired officers vide Circular No. 500 (13 pages of which 6 pages were tables), and Improvement of Pensions for JCOs & ORs vide Circular No. 501 (49 pages of which 42 pages were tables), both on 17^th January 2013 and the effective date was 24^th September 2012, i.e the date when the Govt approved the modified enhanced pensions, as has been argued in different cases in the Courts. The effective date has since been directed to be 1^st January 2006 (CA 8875 of 2011 refers) by the Supreme Court.

The calculations, to prove a point that if needed bureaucrats can move with alacrity, were completed in under 4 (FOUR) months and detailed tables were provided in the said circulars, after due approval of the Ministry of Finance.

But Today.....

So, if the PCDA (P), the DESW of MoD, the Deptt of Expenditure of MoF could compile complicated sets of calculation and tabulation and implement them, then are the same Departments suddenly deprived of expertise on methodology, tabulations, calculations et al that the NDA Govt is delaying implementation of OROP on the pretext of what the Finance Minister has been quoted as stating?

 It gives the inescapable impression that the “tareek per tareek” by the Honourable Defence Minister was just to keep ESM, widows and NoK dangling by pretending that the matter is so complicated and so difficult to resolve.   

So much for the promise of the Honourable Prime Minister, the Honourable  Finance-cum-Defence Minister and the now Honourable Defence Minister to 25 lakh ex-servicemen, widows and NoK of deceased ESM!

Or is there something more to the OROP issue than meets the eye? If there is a shortage of funds as evidenced by Nil amount set aside for OROP in the Revised Estimates for year 2014-15? Please see accompanying article where a humongous amount has been given as exemptions to corporates! And is a 8% increase over what the UPA gave in year 2013-14!  

May be we will get know first hand from the Honourable Prime Minister on 26^th May 2015!

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P.P.S: 

Concessions to corporates at Rs 62,398 crore in FY'15: Arun Jaitley

PTI May 5, 2015, 05.49PM IST

(Arun Jaitley said the…)

NEW DELHI: Tax exemptions and incentives to corporates have resulted in a revenue impact of Rs 62,398.6 crore to the exchequer in 2014-15, 8 per cent higher than the previous fiscal, Parliament was informed today.
In a written reply to a question in the Rajya Sabha, Finance Minister Arun Jaitley said the details of revenue impact on central taxes due to various concessions and exemptions have been detailed in the Budget document for 2015-16.

"The revenue impact in respect of corporate tax payers during the year 2013-14 is Rs 57,793 crore (after taking into account collection due to MAT)," he said.
The revenue impact figures in respect of corporate tax payers for 2014-15 fiscal has been estimated at Rs 62,398.6 crore," he said.
Jaitley said an assessee can claim deduction under various sections of the Income Tax. "Tax incentives or exemptions under central taxes have been provided to promote exports, balanced regional development, creation of infrastructure facilities, generation of employment, rural development, scientific research and development, cooperative sector and also to encourage savings by individuals and donations for charity to achieve the policy objectives of the government," he said.
In reply to another question, Jaitley said the Budget 2015-16 proposes to reduce corporate tax rate from 30 per cent to 25 per cent over the next four years. The reduction, he said, would be accompanied by rationalisation and removal of various kinds of tax exemptions and incentives for corporate taxpayers.
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One Rank One Pension and competitive politics

The Hindu

Congress vice-president Rahul Gandhi and other leaders arrive for a meeting with ex-servicemen at the party headquarters in New Delhi on Saturday. Photo: R. V. Moorthy

TOPICS

We will pressurise the govt. to take a decision at the earliest: Rahul

Even as the Modi government dithered over the economics of implementing the “One Rank One Pension” (OROP) scheme for the armed forces ahead of its first anniversary in power, Congress vice-president Rahul Gandhi took on the ruling dispensation on this issue on Saturday: shortly after meeting members of the ex-servicemen’s cell of his party, he stressed that though the UPA government had allocated money for it, the Modi government had failed to implement the scheme.

“We will pressurise the government and ask them to take a decision at the earliest,” he said.

Raising the emotional pitch on the issue, he reminded the government that those who sought the implementation of the OROP scheme were the ones who secured the borders of the nation. “They [ex servicemen] had knocked on the doors of the government, but nothing materialised. The Army, Navy, Air Force take care of the nation, secure our borders; their demands should be met,” Mr. Gandhi said.

Antony attacks govt.Later in the day, Congress veteran and the former Defence Minister A.K. Antony took the story one notch up when he slammed the Modi government for compromising on national security. “The present government has compromised our national security,” he said, pointing out that “The defence expenditure this year is the lowest in recent years.”
The frontal attack on the BJP-led NDA government on the twin issues of national security and welfare of soldiers — an issue that the BJP has always sought to give a nationalistic spin — comes just two days before Prime Minster Narendra Modi’s scheduled first anniversary rally in Mathura where the government hoped the Prime Minister would announce the OROP scheme.

Indeed, earlier this month, shortly after the Defence Ministry cleared the implementation of the OROP mechanism, Defence Minister Manohar Parrikar had told journalists in Goa that the Finance Ministry would clear OROP “in a few days.” But with Finance Minister Arun Jaitley saying on Friday that the “methodology of calculation” was still being worked out in consultation with the Defence Ministry, it looked unlikely that it would be resolved by Monday.