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Maharashtra Becomes First State to Implement Unified Pension Scheme for Employees

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In a significant move ahead of upcoming elections, Maharashtra has become the first state to introduce the Unified Pension Scheme (UPS) for its employees, following demands from central government employee organizations for state governments to adopt the scheme. The decision came just 24 hours after the Union Cabinet approved the UPS, which offers 50% of an employee’s average salary from the last 12 months as pension, with inflation adjustments and additional benefits. The scheme is designed to address the demands of government employees who joined service in 2004 or later, offering a viable alternative to the Old Pension Scheme (OPS). While 23 lakh central government employees are set to benefit from the UPS, the number could rise to 90 lakh if all states implement the scheme. Top representatives of central government employees have urged states to adopt the UPS and avoid politicizing the issue. Although they consider OPS the best option since it did not require employee contributions, they expressed satisfaction with the new UPS, noting that it incorporates 90% of the OPS features. Shiv Gopal Mishra, of the All India Railwaymen’s Federation, emphasized the practicality of the UPS given the current economic scenario. The panel reviewing the National Pension System (NPS), led by Cabinet Secretary-designate T V Somanathan, highlighted that the UPS template can be replicated by states and would benefit over 99% of employees currently covered under NPS. JCM chief M Raghavaiah called for more states to implement the UPS and urged the government to reduce the service requirement for guaranteed pensions from 25 years to 20 years. He also suggested that the lump sum payment at retirement should be based on one-fourth of an employee’s monthly pay over the last six months. The scheme is expected to particularly benefit over eight lakh railway employees who have joined service in the past 20 years. Addressing concerns about political implications, a senior representative emphasized that the welfare of government employees should not be a partisan issue. Source: Al Jazeera

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Protests Erupt Across Indonesia as Parliament Delays Election Law Changes

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Mass protests have swept across Indonesia after the parliament postponed ratifying controversial changes to the country’s election law. The proposed revisions have sparked outrage, with many accusing the government of trying to consolidate political power for outgoing President Joko Widodo (Jokowi). The parliamentary session to pass the amendments was delayed on Thursday due to insufficient attendance, leading to a standoff outside the legislature in Jakarta, where protesters attempted to breach the gates. Demonstrations also took place in multiple cities across Java, with some turning violent as authorities responded with tear gas. The proposed changes would overturn a recent constitutional court ruling that blocked a vocal government critic from running for the Jakarta governor position. Additionally, the revisions could allow Jokowi’s youngest son to participate in upcoming elections in Java this November, raising concerns about political dynasties. President Widodo has downplayed the unrest, framing the situation as a normal part of Indonesia’s democratic system and checks and balances. However, legal experts have warned that the dispute between the judiciary and parliament could lead to a constitutional crisis. Analyst Titi Anggraini described the situation as “constitutional insubordination.” In Jakarta and other cities, demonstrators carried signs and banners criticizing Jokowi, accusing him of undermining democracy. Many protesters, including members of the Ummat Party, expressed concerns that the government’s actions represent a move towards authoritarianism. The situation remains tense, with parliament yet to decide whether it will reconvene before the regional election registration opens next week. Protesters have vowed to continue their demonstrations until their concerns are addressed.

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DNPA Urges Government to Exempt GST on E-Papers and Digital News Subscriptions

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The Digital News Publishers Association (DNPA) has called on the Indian government to exempt Goods and Services Tax (GST) on e-papers and digital news subscriptions. The DNPA highlighted that while printed newspapers are exempt from GST, digital news subscriptions are currently taxed at 18% under the Integrated Goods and Services Tax (IGST) Act. They argue that news content, whether delivered via print or digital platforms, should be made accessible at affordable rates. The Information & Broadcasting (I&B) Ministry recently requested the Ministry of Finance to reconsider the GST rate for digital news subscriptions. In its appeal, the DNPA pointed out a previous instance where the GST Council reduced the tax on e-books from 18% to 5% in 2018, after recognizing the disparity between printed books (exempt from GST) and their electronic versions. The DNPA believes a similar approach should be applied to e-papers, advocating for either a significant reduction in GST or complete exemption. In a letter dated July 22, I&B Secretary Sanjay Jaju requested Revenue Secretary Sanjay Malhotra to either remove the GST on digital news subscriptions entirely or reduce it from 18% to 5%. Jaju’s letter noted that the higher GST rate could stifle the growth of the online news sector by pushing it towards an ad-based revenue model, which could compromise content quality and credibility through practices like clickbait and sensationalism. The letter emphasized that with the increasing internet penetration in India and the relatively nascent stage of the digital news industry, it is crucial to treat online news subscriptions similarly to printed newspapers and e-books for GST purposes. Jaju also noted that the revenue impact of reducing the GST rate on the Rs. 120 crore digital news subscription industry would be minimal, with an estimated revenue loss of around Rs. 21.6 crore. The DNPA’s appeal underlines the need for policy adjustments to support the growth of digital news and ensure that credible information remains accessible to the public as the media landscape continues to evolve. Source: Story board  

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Centre Approves 25% Increase in Security at Central Government Hospitals Amid Nationwide Protests

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In response to widespread protests by doctors demanding better protection following the tragic rape and murder of a trainee doctor at Kolkata’s RG Kar Medical College, the central government has approved a 25% increase in security at all central government hospitals. The decision, announced by the health ministry, comes amid calls for a special law to combat violence against healthcare personnel. The enhanced security will include the deployment of marshals, which can be requested by hospitals based on individual security assessments. Officials noted that while the protests highlight safety concerns, enacting a central law solely based on the RG Kar incident might not be the solution, as the case did not involve patient-doctor violence. Currently, 26 states and Union territories, including West Bengal, Delhi, Maharashtra, Karnataka, and Kerala, have laws that protect healthcare workers from violence, making such offenses cognizable and non-bailable. Officials emphasized that these existing laws already cover key aspects of protection for healthcare personnel. To address additional concerns, the government plans to form a committee headed by the Directorate General of Health Services (DGHS) to review hospital security, working conditions for resident doctors, and related facilities such as duty rooms and canteens. Public hospitals, as government facilities, cannot be turned into heavily guarded zones, officials stated while urging doctors to end their strike, which has severely impacted patient care. The Indian Medical Association (IMA) has also reached out to Prime Minister Narendra Modi, seeking intervention to address their demands, which include the enactment of a central law against violence in hospitals and the designation of hospitals as safe zones with mandatory security measures. Source: Hindustan Times

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Chhattisgarh Cabinet Approves Formation of ‘Good Governance and Convergence Dept’

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The Chhattisgarh government has announced the creation of a new “Good Governance and Convergence Department” to enhance the effective implementation of state welfare policies and ensure better governance. The decision was made during a cabinet meeting chaired by Chief Minister Vishnu Deo Sai on Tuesday. This newly formed department will integrate key initiatives such as e-Review, e-Public Service Guarantee, and the Digital Secretariat, which were previously managed by the General Administration department. The cabinet has also amended the “Chhattisgarh Government Work (Allocation) Rules” to facilitate this change. In addition, the cabinet approved the implementation of the National Education Policy (NEP) 2020 in the state. As part of this policy, education up to the 5th standard will be provided in local languages or dialects, and the current 10+2 academic structure will transition to the 5+3+3+4 format, focusing on equitable and inclusive education from pre-primary to the 12th grade. The cabinet also decided to extend the registration deadline for providing housing to economically weaker and lower-class families in Naya Raipur under the Mukhyamantri Aawas Yojana. The new deadline has been pushed from March 31, 2024, to March 31, 2027, allowing more time for eligible families to benefit from affordable housing schemes being developed in the area. Source: Hindustan Times

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UK Government Proposes Higher Compensation for Water Company Failures

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The UK government has proposed new measures that would require water companies to provide higher compensation to customers when they fail to meet key service standards. Under these proposals, compensation amounts would be doubled in cases where companies fail to provide adequate notice of supply interruptions or miss scheduled appointments. Additionally, the scope for compensation would be expanded to include automatic payments for incidents such as boil notices, where customers must boil water before use. The proposals are part of an eight-week consultation aimed at addressing longstanding issues within the UK water industry. Environment Minister Steve Reed emphasized the need for reform, citing years of under-investment by privately run water companies, compounded by challenges such as climate change and population growth, which have pushed the industry to the brink of crisis. Public frustration has been mounting over the release of sewage into rivers and seas, leading the Environment Agency to recently report that many water companies are failing to meet basic standards. The agency has promised a stricter regulatory approach moving forward. Jenny Suggate of the Consumer Council for Water noted that the proposed measures would incentivize water companies to improve their services, ensuring that customers receive better protection and more reliable service.

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Muhammad Yunus to Take Oath as Interim Government Head

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Nobel laureate Muhammad Yunus is set to be sworn in as the head of Bangladesh’s interim government today, August 8, 2024, at 8 p.m. local time. This development follows the resignation and flight of former Prime Minister Sheikh Hasina amid violent anti-government protests led by the Students Against Discrimination movement. Army Chief Gen Waker-Uz-Zaman announced the formation of the interim government and stated that an advisory council comprising 15 members will be established to assist Yunus. He assured that the armed forces would provide all necessary support to the 84-year-old Yunus, who is currently en route to Dhaka from Paris after attending the Olympics. Yunus made a public appeal for calm and non-violence, urging the populace to embrace this “new victory” peacefully. “Refrain from all kinds of violence,” he stated, emphasizing the need for unity and peace to rebuild the nation. Khaleda Zia, chairperson of the Bangladesh Nationalist Party (BNP) and a former prime minister who was recently freed from house arrest, echoed Yunus’ sentiments. She stressed the importance of “love and peace” over “anger” and “revenge” in the effort to rebuild Bangladesh. Gen Zaman’s announcement came as authorities worked to restore order following the upheaval that led to Sheikh Hasina’s departure. The general emphasized the military’s role in supporting the new interim administration and ensuring a smooth transition of power. Yunus’ return to Bangladesh marks a pivotal moment in the country’s political landscape. Upon his arrival at Dhaka’s main international airport, he will be welcomed by military officials and will then proceed to take the oath of office. The international community is watching closely as Bangladesh embarks on this significant transition under Yunus’ leadership.

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No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine

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Infosys is facing a substantial tax challenge from the Indian government, which has refused to reduce a ₹32,000-crore ($4 billion) tax demand related to GST regulations. The demand, issued last month, pertains to services received from Infosys’s overseas branches between July 2017 and the fiscal year 2021-22. This amount represents about 85% of Infosys’s revenue for the quarter ending June 30. Infosys has requested a ten-day extension to respond after recent discussions with Indian Income Tax department officials. Despite this, the Indian authorities have indicated they will not ease the demand. In a recent update, Infosys confirmed that the tax demand for the 2017-18 financial year, totaling ₹38.98 billion, has been resolved. The company maintains it has met all tax obligations and adheres to both central and state regulations. In addition to this domestic issue, Infosys has also faced scrutiny from Canada. In May 2024, the Canadian government imposed a fine of CAD 134,822.38 (₹82 lakh) on Infosys for underpaying the employee health tax for the fiscal year ending December 31, 2020. Infosys disclosed this penalty in a regulatory filing received from Canada’s Finance Ministry on May 9. The broader IT sector has also been impacted, with significant declines in stock prices for other major players like Tata Consultancy Services and Satyam Computer Services. This downturn follows Infosys’s stock performance, which saw profit-taking after meeting market expectations and experiencing a prior price surge. Reference by Mint

No Relief for Infosys: Indian Government Maintains ₹32,000-Crore Tax Demand Amidst Canadian Fine Read More »

Lok Sabha Passes Bill to Allow Government Expenditure for FY 2024-25

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The Lok Sabha on Monday approved about ₹140 lakh crore in expenditure demands by different ministries of the Central Government, completing two-thirds of the legislative approvals needed for the full Budget of 2024–25. The lower house, which last week debated the Budget, approved demands for grants as well as the Appropriation (No 2) Bill 2024, which authorizes the government to use certain sums out of the Consolidated Fund of India for the services of the financial year 2024-25. This followed a guillotine being applied after a discussion on grants for four ministries — Railways, Education, Health, and Fisheries. The Lok Sabha will now discuss the Finance Bill (No 2), 2024, which essentially contains the tax proposals in Finance Minister Nirmala Sitharaman’s Budget for 2024–25. The Rajya Sabha is also simultaneously discussing demands for grants for four other ministries — Agriculture, New and Renewable Energy, Cooperation, Housing, and Urban Affairs. It will also discuss the Finance Bill, but as per the Constitution, it can only return such bills to the Lower House. The budgetary exercise will be complete after the passage of the Finance Bill (No 2), 2024, by the Lok Sabha. While the guillotine is literally a large, weighted blade used for executing a condemned person, in legislative parlance, it means to bunch together and fast-track the passage of financial business. It is a fairly common procedural exercise in the Lok Sabha during the Budget Session. Reference from Business Standard

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State Government Sanctions ₹4,194 Crore Relief Package for Cotton and Soybean Farmers

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The state government has sanctioned substantial financial assistance for cotton and soybean farmers adversely affected by price declines in the preceding year. To alleviate the repercussions of these losses, the government unveiled a financial relief package intended to aid cotton and soybean cultivators for the kharif marketing season 2023-24. This relief package encompasses a grant of ₹5,000 per hectare, with a ceiling of two hectares per farmer. The government has sanctioned a proposal to extend financial assistance in two strata: ₹1,000 per hectare for areas under 0.2 hectares and ₹5,000 per hectare for areas exceeding 0.2 hectares, up to a maximum of two hectares. As the GR was issued on July 29, the precise amount expended for Vidarbha farmers remains unascertained, according to officials. “Nevertheless, the process has commenced at district levels across both divisions in Vidarbha. We will have to initiate from the very beginning, which entails compiling a list of eligible farmers, among other tasks,” an official said. The government has allocated a total expenditure of ₹4,194.68 crore to effectuate this financial assistance scheme. Of this, ₹1,548.34 crore is apportioned for cotton farmers, while ₹2,646.34 crore is earmarked for soybean growers. The funding will be deployed during the additional budget presented on July 5, underpinning the special action plan formulated to augment the productivity and value chain of cotton, soybean, and other oilseed crops. Eligibility for this financial support is clearly delineated: Cotton and soybean farmers who cultivated their crops during the 2023 kharif season are entitled to get ₹1,000 per hectare for areas under 0.2 hectares and ₹5,000 per hectare for areas up to 2 hectares. The scheme is anticipated to buttress the growth of the agricultural sector, reinforcing the government’s dedication to addressing the exigencies of the farming community.

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