REVIVAL OF OLD PENSION SCHEME

  • Concerned over revival of the Old Pension Scheme by certain Opposition-ruled States, Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal on Monday said unfunded pension schemes are ultimately a tax on future generations.
  • Sanyal further said given the current stress in the global economy and the repeated downgrades done to world GDP growth numbers by international agencies, it was quite obvious that 2023 would also be a difficult period.
  • “It should be very clear that unfunded pension schemes are ultimately tax on future generations. Therefore, one should be very, very careful to reverse pension reforms that have been done with great difficulty over the last couple of decades,” he told PTI.
  • Sanyal was responding to a question on some Opposition-ruled States’ decision to switch to the Old Pension Scheme (OPS).
  • The OPS, under which the entire pension amount was given by the government, was discontinued by the NDA government in 2003 from April 1, 2004.
  • On overall macroeconomic situation, he opined that apart from the problems in eastern Europe, a sharp surge in COVID cases in China will possibly have spillovers on rest of the world’s economic growth.
  • According to him, India needs to be vigilant about the prospect of resurgence of COVID-19.
  • “There are macroeconomic stability issues that we need to be continuously monitoring particularly in the area of inflation and also in the case of current account given that our export markets are all slowing down,” he opined.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB

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