No budgetary support to retain 9.5% EPF rate: PM

Prime Minister Manmohan Singh today ruled out any budgetary support to retain employees provident fund (EPF) interest rate at 9.5 per cent in the current year as demanded by trade unions and some political parties.

"Last year also there was a demand for budgetary support. We made it clear that there would be no budgetary support and this stand remains," Singh told journalists on board a special aircraft. Singh is on a four-day visit to Kuala Lumpur to attend the India-Asean summit and the first East-Asia summit.

The prime minister's response came when asked whether there would be any political intervention to raise EPF rates from 8.5 per cent as recommended by the Employees Provident Fund Board.

Asked if he was satisfied with 8.5 per cent EPF rate as announced recently by the board, Singh said, "It is not the question of whether I am satisfied or dissatisfied. It is a question of what EPF can afford." "If they declare higher rates that they can sustain, I have no problem," he said adding the board should find resources on its own.