Detriments of the Old Pension Scheme
Whichever way one looks at it, the promise by select state governments and political parties to return to the Old Pension System for Government employees is a freebie of the kind that Prime Minister Narendra Modi referred to as Revadi. It is not affordable. It is not targeted at the deserving. It is not productive. It creates a terrible precedent. It ought to carry the following “health” warnings: disastrous for state finances, additional liabilities for future taxpayers and detrimental to the economic well-being of the majority.
