Monday, May 25, 2015

Delay in OROP Decision 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 Friday 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 9th July 2012 and amended on 12th 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 17thJanuary 2013 and the effective date was 24th 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 1st 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 26th May 2015!
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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.
  1. Sir, OROP will get implemented, if at all, when some level of sincerity, sense of honour and/or political necessity become part of the ongoing process.

    The real concern is how the other important issues, Rank Pay "phase 3" for instance, have now been pushed into the background. Those are the issues on which armed forces veterans have some degree of control as the judiciary has oversight.

    But, judging from some statements, from RDOA and their legal team, indicating rather pro establishment sentiment and excessive confidence in political structures, there is a need to review whether a more hard headed realism needs to prevail in resolving those matters.
  2. for solution of defence veterans problems and demands political will and open mind set is required.AT PRESENT BOTH R MISSING.listening to the SHOCKING DM interview on IBN 7 it is clear that nothing is going to materialise in near future.YESTERDAY TIMES NOW DEBATE ON OROP AT 19.00 HRS DEBACLE WAS SHOCKING AND INSULTING TO ALL DEFENCE VETERANS.
  3. My take on this issue is that the FM & his ministry are the stumbling blocks.The RM seem to be a sincere man & has completed his work of calculating the OROP.The final figure may not have been palatable to the finance babus & they may want it to be brought down by a certain factor
    PM has to take the final call & what ever happen s FM is in for a drubbing
    The way the Times no debate was called before the Gens could air their opinion,show the BJP is not ready for the political fall out of OROP non implementation & had pulled strings to get the program halted
    Rank pay seem to have gone into hibernation & RDOA silence is a little surprising indeed
    1. @Venkatesh VT : "..The RM seem to be a sincere man & has completed his work of calculating the OROP.."

      Where is the need for us to give certificates of merit? They are all sincere in following whatever strategic vision the Government has worked out.

      I don't think they need any medals for sincerity from anyone, leave alone veterans who, for reasons known and unknown, keep trying to analyse the workings of minds at the political and bureaucratic levels with fairly small profit, as the record shows.

      RDOA have come out with just one brief update on these matters recently. You have a point about their silence as also the nature of their views on OROP, as pointed out by @sunlit.
  4. 14 Jul 15 is the complete hearing on Contempt Petition No. 328 of 2013.
  5. (Source- Aerial view blog)


  1. Dear sir,

    The present finance minister is unfit to hold the ministry because he was rejected by the people in the lok sabha election, he gained his position through back door like aurangshep gained his kingship, I think something is going to happen when it erupts no body can contain it. only bhagawan can protect india

  2. Please do not be angry and spoil your health ! Wait with hope ! Government may avoid making explosive statements. I pray something good people think for the men and women who placed less priority on their families and career !