Maharashtra: Let’s be practical, not emotional about old pension scheme, says Devendra Fadnavis

Finance Minister Devendra Fadnavis has appealed to employees who are demanding the old pension scheme (OPS), and legislators who are supporting their demand, to think practically, instead of emotionally. He said considering the long-term financial liability, states which have opted for OPS won't be able to sustain it after 2030.

He talked about a report by the Reserve Bank of India which has assessed the liability of the states which have resumed OPS. The report said the ratio of the burden and the income will hit the state budget, leaving much less money for development work, because the income will not increase as much, to support additional committed expenditure like pension and salary.

"We are not negative about the scheme. But think about its impact. We are not people who will decide keeping the forthcoming elections in sight. We may win the elections as well, if we revive OPS, but that will create a liability for others (who will come to power later)," he said. He was speaking in the legislative council where the issue was raised by Opposition leader Ambadas Danve. MLC Kapil Patil had moved the motion to discuss the OPS issue. Fadnavis said no developing or developed country has an OPS type scheme in place.

The FM said he was ready to discuss the issue with employees and pensioners' unions. "The matter will be resolved if they understand the technicalities. They should not deal with this emotionally, but practically. I also request the Opposition to not make this an issue of ego. This is a state matter which should be decided on thoughtfully. Employees should also shed their ego and come forward to discuss.

Also read: Maharashtra state budget puts women, farmers in focus

I appeal to them to withdraw a call to strike work. It is not right if the Opposition is happy because of employees' agitation," he added. He said the new pension scheme was started in 2005 because the state finances were poor then and the new wage boards were put in place. So the then government (not BJP's) consciously decided to end OPS. He said the state's committed expenditure in the budget will go to 83 per cent by 2030 (pension, salary and interest payment) from 56 per cent today, even if they don't provide a single job from now on.

"We can take a popular decision, but we must also think of the future. Even economic expert (Congress leader) Montek Singh Ahluwalia has said that the OPS was not feasible financially. We are ready to discuss it with employee unions, some of which have promised a resolution when we sit across the table," he added, saying there was enough time to find a solution based on statistics. "There could be something between OPS and the new pension scheme. People want good returns when they retire. Let's explore it first," Fadnavis said.