Cabinet to meet on Friday to clear populist measures

 The Union Cabinet Friday will decide on a series of populist measures and some ordinances on anti-graft and protection of rights bills at a meeting possibly the last before the model code of conduct could come into force for coming Lok Sabha polls.

A proposal to increase the poll expenditure cap up to Rs.70 lakh per contestant from Rs.40 lakh now is also on the table of the cabinet meeting.

The cabinet will also decide on hiking dearness allowance to 100 per cent from existing 90 per cent, benefiting 50 lakh employees and 30 lakh pensioners.

The hike in DA would be effective from January 1 this year.

Another proposal which will bring cheers to pensioners is to ensure Rs.1,000 minimum monthly pension under the pension scheme run by retirement fund body EPFO, which would immediately benefit 28 lakh pensioners.

The cabinet is likely to consider a clarification on the decision for supply of 12 subsidised LPG cylinders per household in a year.

The government had last month raised the cap on supply of cheaper LPG from 9 to 12 cylinders of 14.2-kg each. It was inferred that this meant one cylinder in a month.

The ministry has proposed to the cabinet that consumers should have the freedom to book a refill after 21 days with an overall cap of 12 subsidised bottles in a year.

When the model code of conduct goes into force with the announcement of the election schedule, no populist measure can be made public and any policy decision can be announced only with the clearance of the Election Commission.

Sources said the cabinet may also consider raising the retirement age of government employees from 60 to 62 years.

The raising of superannuation age was originally a part of the Terms of Reference of the Seventh Pay Commission.

Since the Commission report is expected not before 2017, a decision on raising the retirement age cannot happen before that.

So, the reference to retirement age has been removed from the ToR of the 7th Pay Commission and it is speculated that the same may be brought as a supplementary agenda.

Source:http://indiatoday.intoday.in/story/cabinet-meeting-to-clear-populist-measures/1/345964.html