The government plans to cut its subsidy bill to under 2% of the gross domestic product (GDP) in 2012-13, finance minister Pranab Mukherjee said in his budget speech on Friday. High crude oil prices and burgeoning fertilizer subsidies, primarily on account of imported non-urea fertilizers, have meant India’s subsidy bill has zoomed to Rs2.16 trillion, or 2.5% of the GDP. Mukherjee has set an ambitious target to reduce this to under 1.75%...

-The Hindu   By filing a Special Leave Petition against the Karnataka High Court order directing payment of statutory minimum wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the United Progressive Alliance government has betrayed its insensitivity to the rights of the poor. The courts have ruled that payment below minimum wage amounts to “forced labour”, which is constitutionally prohibited. The Centre's implacable stand that workers employed...

How much should workers under rural employment scheme be paid if minimum wage fixed by a state is more than that of the Centre? The Supreme Court has reiterated the Karnataka High Court order, directing the Centre to pay the minimum daily wage rate applicable in Karnataka to labourers employed in the state under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The Centre had fixed the wage rate for...

-The Economic Times   The Supreme Court has refused to stay a recent Karnataka High Court verdict that has said the central government is liable to pay higher wages under the country's flagship rural employment programme in tandem with that of the state minimum wage rate. It has further asked the government to find a way to end the disparity between the wages paid under Mahatma Gandhi National Rural Employment Act (MGNREGA)...

Bench refuses to stay Karnataka High Court order In a major setback to the UPA government at the Centre, the Supreme Court on Monday refused to stay the Karnataka High Court order for payment of minimum wages to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) workers and suggested that the government, instead of appearing adversarial, should resolve the issue through a consultative process. The only relief the government secured was...