The Centre and states together spent about 9.6 trillion on the pension of their employees in 2023-24 (FY24, revised estimates), accounting for 3.3 per cent of India's gross domestic product (GDP). The proportion peaked at 3.8 per cent in the pandemic year of FY21 and fell to 3.3-3.4 per cent later. The average spending was 3.3 per cent in the decade beginning FY15.
Most of the burden was caused by the old pension system (OPS). Under the new pension system (NPS), effective for employees recruited from January 1, 2004 in central services, excluding the army, and most states, governments earmark only 14 per cent of their basic pay each year.
With their combined outgo topping₹5 trillion for the first time in FY24, the pension bill of states exceeded that of the Centre by more than 82,000 crore. States' spending was higher than the Centre's in the three financial years till FY24.
However, as a proportion of revenue receipts, the states' outgo was 4.2 percentage points lower than the Centre's in FY24. This has been the trend for a decade.
This analysis included defence and railway pensions while calculating the Centre's bill. Defence personnel are paid under OPS. Railway employees are paid from a separate fund.
OPS-NPS-UPS
The NPS was touted as the milestone pension reform to lessen the burden on the exchequer. However, government employees were aggrieved as they would not get assured pension linked to inflation, as was the case with OPS.
Denne historien er fra September 16, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 16, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Apple harvest: iPhone 16 sales up 15-20% over iPhone 15 on Day 1
The highly anticipated launch of Apple iPhone 16 series has generated significant buzz in India on Friday, with serpentine queues at flagship stores and quick-service platforms offering deliveries for the first time.
iPhone 16 hits stores sans highly awaited AI features
Users will have to download the Apple Intelligence software features over time
Andhra changes ghee supplier amid Tirupati laddu row
With Tirupati laddu row snowballing into a major controversy, Karnataka government on Friday issued a circular instructing all temples coming under the Hindu Religious Institutions and Charitable Endowments Department, to maintain quality in 'prasada' prepared there.
Reading between the lines of an epic
There are many ways to read the Mahabharata. Like an onion, it opens up in layered, concentric circles of stories, all nested within an invisible labyrinthine web.
Crypto ads flood SC's hacked YouTube channel
Court disables channel after videos promoting XRP were displayed
THALAPATHY AMONG EQUALS
Mass following led to Vijay's rise as India's highest paid actor, so why is he not seen much in ads?
Vi needs govt support, tariff hikes: Analysts
AGR order provides visibility for road ahead of debt-ridden telco
Sebi allows MFs to buy, sell credit default swaps
The Securities and Exchange Board of India (Sebi) on Friday allowed mutual funds (MFs) to participate as buyers and sellers in the credit default swap (CDS) segment and allowed greater flexibility to boost liquidity in the corporate bond market.
Sebi refuses to disclose instances of Buch's recusal on conflict of interest
The cases where Sebi chairperson Madhabi Puri Buch recused herself due to potential conflict of interest is not \"readily\" available and collating them would \"disproportionately divert\" its resources, the securities market regulator said in an RTI response on Friday.
LIC MF may launch ₹100 SIPs in October
LIC Mutual Fund plans to launch smaller ticket-size systematic investment plans (SIPs) of ₹100 by the first week of October, said RK Jha, managing director (MD) and chief executive officer (CEO).