Old pension scheme to exert huge burden on state finances: RBI
There is a need for review of the current system of grants from the Centre to the states, says RBI.
There is a need for review of the current system of grants from the Centre to the states, says RBI.
Fiscal burden due to OPS could be as high as 4.5 times that of NPS, with burden reaching 0.9% of GDP annually by 2060
The development comes at a time when Congress-ruled states like Himachal Pradesh, Chhattisgarh and Rajasthan have opted to roll out the old pension scheme.
Relaunch of the old pension scheme by some states and rising expenditure on freebies are expected to stretch state government finances.
The pay-as-you-go scheme for pension is supposed to be a whacking on the finances of the current generation of taxpayers.