Sunday, December 11 2005 17:56 Hrs (IST) - World Time -

On Board Special Aircraft: Prime Minister Manmohan Singh today (Dec 11, 2005) ruled out any budgetary support to retain 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 demand for budgetary support. We made it clear that there would be no budgetary support and this stand remains," Singh told journalists accompanying him to 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 EPP should find resources on their own.