Healthy public finances are the key to prosperity

The future of our society will probably be shaped by the economic management of the country

- JAYRAKASH NARAYAN

Most Indian media and middle classes are obsessed with politics as a spectator sport and power game. But the future of our society will probably be shaped by the economic management of the country.

This column has drawn attention on more than one occasion to the future catastrophe that will affect the next generation if governments recklessly switch to the unfunded, excessively generous old pension system (OPS) for government employees. In Himachal, Punjab, Rajasthan, Madhya Pradesh and Chhattisgarh the state governments unwisely reverted to OPS from the fully funded, contributory National Pension System (NPS) introduced in 2004, and pursued by BJP, Congress and other parties. West Bengal never embraced NPS.

But now, happily there seems to be a reversal of the trend, and funded, contributory pension system with guarantee of minimum pension, but without a burden on the next generation is gaining acceptance. Andhra Pradesh introduced such a guaranteed contributory pension system (GPS). Karnataka and Telangana, where Congress promised OPS, have rightly ignored that pledge, and are looking for alternatives. In Madhya Pradesh, Chhattisgarh and Rajasthan, with BJP in power now, the governments are reversing the ruinous OPS policy.

The Union government has embraced a funded contributory universal pension system with guarantee of minimum pension (UPS). Maharashtra now embraced UPS. All in all, this reversal of the dangerous trend of embracing the ruinous, unfunded OPS, and finding a viable solution to address the employees' concern for assured pension is a welcome and wise development.