Saturday, March 2nd, 2024

Trending News: Old Pension Scheme: Congress will try Himachal’s formula in other states as well


Congress On Old Pension Scheme: Himachal Pradesh Assembly Election Congress won with 40 seats. Leaving aside the anti-incumbency against the BJP government, the OPS (Old Pension Scheme) created a very good atmosphere in favor of the Congress. Congress party kept its entire election campaign around OPS and the party also got its benefit. At the same time, it is now believed that the Congress party is preparing to make the issue of OPS its biggest weapon in the coming elections as well.

The National Pension System (NPS) was applicable in almost all the states, but despite that the Congress decided to implement the old pension system in Rajasthan and Chhattisgarh. On the other hand, the Aam Aadmi Party has also announced the closure of the new pension scheme in Punjab. However, there is another side to this as well.

According to the report of Hindustan Times, economists do not consider the old pension system as a fiscal policy. At the same time, Congress leaders argue that the issue of OPS is very important in many states and they will keep it in front of the voters in the form of a promise and get it implemented after the formation of the party government.

What did Jairam Ramesh say?

News reels

On December 9, on reforms related to the new pension scheme, Congress general secretary for communication Jairam Ramesh said, “The word reform is a very abused word. Anything and everything can be classified as reforms and then all conversation stops.” … This old pension scheme has been a demand for many years.”

NPS came in Atal government

It is noteworthy that NPS was brought during the government of Atal Bihari Vajpayee and was started on January 1, 2004. when Narendra Modi When the government came to power, it offered tax benefits on the scheme to make it popular. According to analysts, there is an intergenerational disparity in the old ‘Pay As You Go Scheme’ which ran till 2004.

What is the problem with the old pension scheme?

Under this, contributions from the current generation of workers were used to pay for the pensions of current pensioners, making it an unfunded pension scheme as it represented a direct transfer of resources from the current generation of taxpayers to the pension. According to Soumya Kanti Ghosh, group chief economic advisor at the country’s largest lender State Bank of India, this meant that the old system was financially disastrous.

What is special about the old pension scheme?

What makes OPS politically attractive is that it provides an assured benefit to the retiree, which is fixed at 50% of the basic pay. Apart from this, like salary, pension was also increased with increase in dearness allowance in view of inflation.

‘Increase in pension liabilities’

“Any return to the old scheme is not financially viable,” Ghosh told HT. According to Ghosh’s research, there has been a sharp increase in pension liabilities of state governments in the long term. The compound annual growth in pension liabilities for the 12-year period ending 2021-22 was 34% for all state governments. Ghosh said that as of 2020-21, pension payments as a percentage of revenue receipts stood at 13.2%.

Why was OPS made an issue in Himachal?

Let us tell you that OPS was a major promise of the Congress party in the Himachal Pradesh elections. “The state has a large number of government employees as the public sector is the biggest source of employment in the state. OPS became a major issue in the election,” a Congress leader told HT on condition of anonymity.

OPS card failed in Uttarakhand

Significantly, the party had tried to play the OPS card in the Uttarakhand elections as well, but the Bharatiya Janata Party won. At the same time, the Congress is keen to make the pension scheme an issue in other elections as well. The Congress leader said, “It depends on the leadership of the state. We are now fighting elections in the states.”

Government targeted on the pretext of MGNREGA

On whether OPS can lead to loss of revenue, Jairam Ramesh said, “Congress party has taken a view. We had taken this resolution in Gujarat also, we have taken this resolution in Himachal too. Whatever may be personal views , it is the idea of ​​the party which prevails.

Jairam Ramesh further said, “What is socially desirable is economically prudent. We have to find resources. Was MGNREGA economically prudent? Today the biggest champions of MGNREGA are those who are questioning the financial prudence of MGNREGA Were.”

read this alsoToday Congress’ ‘Bharat Jodo Yatra’ will be in the name of ‘Women Power’, Priyanka and her daughter Miraya are also joining hands with Rahul

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