Tidbits | wealthymatters

Shades Of Nagarwala?

September 23, 2013 Leave a comment

wealthymatters

As soon as I read of the PSU employee impersonating Sonia Gandhi on the phone and trying to influence the coal allocation case in today’s papers,Link,I was reminded of the old Nagarwala scandal.Link.

In this case too, I suppose ‘We the People’ can’t be sure we are going to hear the whole truth.

But most definitely both cases show what miracles the name Mrs.G likely accomplishes,Never mind whether it was the senior Mrs G or the current one!

Gets one wondering what all is got done in the country in the name of Mrs,G……….

Filed under Tidbits Tagged with coal block allocation scandal, coal gate, impersonating Indira Gandhi, impersonating Sonia Gandhi, Nagarwala case, Nagarwala scandal, name dropping, postaday

Diwali Dhamaka

September 21, 2013 1 Comment

wealthymatters

Yesterday the Union Cabinet approved a 10% increase over the existing rate of 80%, in dearness allowance and dearness relief, which will benefit about 50 lakh central government employees and 30 lakh pensioners .

The increase will be applicable from July 1, which means the central government employees and pensioners will get a good lump sum during the festival season-a real Diwali Dhamaka.

There will be additional . 900 crores every month in the hands of central government employees and pensioners.Maybe this should help pump-prime the economy!

The increase is in accordance with accepted formula based on the recommendations of the Sixth Central Pay Commission.Under the current rules, the government uses CPI-IW data for past 12 months to arrive at the biannual dearness increase, which is computed as a percentage of basic salary. It was increased to 80% from 72% in April 2013, effective January 1 this year. After Friday’s increase, the amount rises to 90% of basic pay. This is the first double digit dearness allowance increase in about three years. The retail inflation for industrial workers between July 2012 and June 2013 was used to compute the increase in DA.

Just see how much salaries have had to increase just to keep up with inflation.

Filed under Tidbits Tagged with basic pay, basic salary, CPI-IW, dearness allowance, dearness relief, Inflation, inflation and pension, inflation and salaries, pension, postaday, retail inflation, Sixth Central Pay Commission

Glad To Be Wrong!

September 21, 2013 Leave a comment

Our government might have had its problems with Duvvuri Subbarao refusing to pump money into the system on demand,but I personally felt he didn’t attack the inflation problem in the country vigorously enough.So when I heard of the government’s decision to appoint a new RBI governor to replace him,I was like…….hmmmm,new guy brought in to toe the government’s line,somebody who when told to jump would ask “How High?”…….The rock star like coverage of his appointment,in even the pink papers,made me even more cynical.”Stage-Managed”,”Command-Performance”were the sort of words that came to mind.And I tuned out whatever Raghuram Rajan had to say.

I am pleasantly surprised about his concern for savers,liquidity and inflation.And I am eagerly awaiting his Inflation Indexed Savings Certificate based on the CPI New Index.

In this case I am glad to be wrong!Here’s hoping Raghuram Rajan remains true to the anti-inflation tradition of the Chicago School of economics