The UPA government seems to be very happy for creating the problems one afteranother for Indian people. In yet another hard step, the interest rate ofEmployees Provident Fund (EPF) has been reduced from 9.5% to 8.25% for 2011-12,the biggest cut in last decade. The funny part here is that even bankfixed deposits and other small saving units are providing higher returns inlesser time as compared to Provident fund now. The EPF rate for this year iseven lesser than interest rate payable on PPF which is 8.6%.
The members of trade union of Employees Provident Fund Organisation andOpposition Parties have strongly opposed this move but it seems government isnot ready to take the step back and keep the same interest rate. CPIleader Gurudas Dasgupta said that the issue will be raised in parliament afterthe necessary discussion with opposition parties and we will try everything forbetter returns to all employees.
Arguing for the 8.25 percent interest rate, EPFO has said that this also wouldleave a deficit of 24 lacs. It has further made clear that an interest rate of8.5% will lead to a deficit of approximately 526 crores. The returns here beingless than Public Provident Fund Scheme which stands at 8.6% clearly states thatIndian Employees are paying the price for the absurd policies of the UPAgovernment. Pranab Mukherjee who is the pioneer to decide this rate should lookmore towards those people who have stashed a huge sum of black money andstealing government money through corrupt practices rather than creatingpolicies which are useless and funny.