New Delhi: Prime Minister Manmohan Singh on Monday ruled out any budgetary support to retain employees provident fund (EPF) interest rate at 9.5 per cent for the current fiscal.
The Prime Minister?s assertion comes even as the Left parties and trade unions have called countrywide protests on December 20 against the EPF rate cut.
"Last year also there was a demand for budgetary support. We made it clear that there would be no budgetary support and this stand remains," Singh said.
The government said that a 9.5 per cent rate was causing a shortfall of Rs 1000 crore, forcing it to dip into its reserves.
At 8.5 per cent, the shortfall comes down to Rs 370 crore, which it says is manageable.
While the slash in EPF rate continues to create a stir in the Parliament, it also comes as a major setback to India's 40 million subscribers.
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