It is impossible to implement Old Pension Scheme. Will cause imbalance in the state revenue!

It was the demand of state government employees that the old Pension scheme should be implemented in the state. But the figures from State Revenue Department indicates that it is nearly impossible to start the old pension scheme. The annual revenue of the state is nearly Rs 3.5 lakh crore. 

One lakh 64 thousand crore is spent annually on the salaries of 17 lakh government employees and about 40 thousand crore is spent every year on pensions of retired employees of state Government. Now, if pensions are introduced for all the new government employees, the figure will go up to Rs 1 lakh crore. Therefore, the entire income of the state will be spent on salaries and pensions only and there will be no funds for other works. Therefore, the way to implement the old pension scheme is tough. 

Many of the employees in other government departments, including the revenue and education departments, have started protests across the state demanding implementation of the old pension scheme. At that time, a committee was appointed under the chairmanship of Minister of State for Home Affairs Shambhuraje Desai. The analysis of this committee is currently underway. 

Prior to that, the state's revenue has not increased as expected in the last few years due to the state's financial position (annual revenue) and also due to the Covid-19 pandemic. Therefore, developmental works have to be given the same revenue as the expenditure on salaries and pensions. In fact, most of the revenue is expected to be spent on development. 

The impact of the Covid-19 is still causing hinderance to the state revenue. On the other hand, the annual GST rebate of around Rs 25,000 crore from the Center for five years has now been discontinued.