Maharashtra: State will go bankrupt if old pension scheme is resumed, says Devendra Fadnavis

If the old pension scheme is implemented, it will cost the state an additional Rs 1.10 lakh crore annually. Representation pic

The state government will not go back to the old pension scheme for its employees due to the increasing financial burden. The government has also decided to not provide financial grants to schools that will come up in future and instead it will encourage self-financed institutions.

BJP legislator Ram Satpute raised the demand for the old pension scheme in the Assembly on Wednesday after the matter of a 20 per cent government grant for teaching and non-teaching staff of unaided and partially aided schools came up.

Deputy Chief Minister Devendra Fadnavis explained the reason behind refusing the demand for the old pension scheme saying that it would cause an additional annual burden of Rs 1.10 lakh crore. "The old scheme was stopped in 2005. If we spend this much money, the state will go bankrupt. Even the MVA government had decided against it and their decision was correct," he said.

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Speaking about grants to schools, he said that there were around 3,500 schools which have been availing assistance from the government and added that it would not be possible to add more schools under the scheme.

Sources said that the Congress was persistent in demanding revival of the old pension scheme when MVA was in power. This was one of the sops the party had promised in its poll agenda which played a significant role in its win in Uttarakhand. However, senior NCP leader Ajit Pawar, who headed the finance department during MVA rule, was against the move.