Enhanced Govt. pay package may impact fiscal deficit

The Government is likely to overshoot its 4.5 per cent fiscal deficit target with the Group of Ministers (GoM) enhancing the Central Government employees’ pay package by Rs. 18,250 crores as against the earlier envisaged Rs. 13,250 crores. With the new package to be notified as soon as it is cleared by the Union Cabinet, the indefinite strike plan by the 40-Iakh Central employees has been called off. Top Finance Ministry officials said that two major improvements relating to an across the board revision in fitment formula and improvements in the scales and increment rates in the lowest categories will cost the exchequer an extra Rs. 2,200 crores per annum.

Pond’s 1:1 bonus out of general reserves

The board of directors of Pond’s (India) Ltd (PIL) has recommended one bonus share for every share held, by capitalising Rs. 14.9 crores of general reserves. The company will be issuing 1,49,27,665 shares of Rs. 10 each. The bonus shares would be given out of the general reserves of the company, subject to approval of the members. This will enable PIL to make the bonus issue without contravening the Karnataka High Court order, which restrains issue of bonus shares by capitalising the share premium account, pending final disposal of a writ petition preferred by a few shareholders challenging Section 81 (A) of the Companies Act 1956.

Assam police question Tata Tea officials

Tata Tea company executives, including its general manager, were questioned by the Assam police on the company’s alleged financing of militant outfits, even as official sources claimed that some more tea companies were “paying money” to the militants.