ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Case for a Provident and Pension Funds Authority

There is a strong case for setting up a separate regulatory agency, the Provident and Pension Funds Authority (PPFA). The PPFA will be in a better position to address the limitations of the current, rather fragmented, pension system and help develop a robust pensions industry than either the status quo or entrusting the task to one of the existing agencies.

Interest Rates on Small Savings and PF Schemes

The arguments for linking interest rates on small saving (SS) schemes to market rates and rationalising the tax benefits available to them rest on removing the government's arbitrary powers in a liberalised interest rate environment. If as a result of the suggested measures SS schemes become relatively unattractive, the government would need to borrow more from alternative sources. If total government borrowing is not kept in check, yields on government securities would go up and with it the interest rates on SS schemes would also warrant upward revision.

Growing Fraud in Government

Fraud, waste and corruption are alarmingly on the increase. Yet there is nothing in the Activity Report of the Comptroller and Auditor General (CAG) to show if the CAG is even aware of this. No agency of government has the ringside view of the rottenness of the management of government finances. But like the good monkey, the CAG keeps his eyes and ears shut.
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