Jaipur: The Rajasthan government slashed the interest rate on GPF and CPF deposits of the state employees. The decision was taken to offset some of the financial burden placed on the state coffers due to the current COVID-19 situation. The state government is spending money on relief work and resources in its fight against the virus spread. At the same time, tax collection and revenue generation has suffered due to the lockdown. An order in this regard was issued on Wednesday.
The interest rate on GPF and CPF has been slashed by 0.8%. The new interest rate for GPF and CPF deposits in Rajasthan is now 7.1%. Earlier, it was 7.9%. However, this may be a temporary reduction. According to the finance department order, the interest rate be effective from April 1, 2020 to June 31, 2020. The last interest rate revision was on January 27. The finance department had determined an interest rate of 7.9% from January 1 2020 to March 31.
The government needs to pay Rs 5187 crore for the salary and pension of the state employees. However, the lockdown has reduced the current revenue collection by over Rs 2000 crore. In April, the government revenue is believed to have decreased by 70%. The biggest reason is the poor collection of state GST.
The government employees received their salary with a 30% deduction last month. It is believed that the deduction may be on the cards this month also.