Raipur: Chhattisgarh Chief Minister Bhupesh Baghel on Wednesday revived the Old Pension Scheme while presenting the annual budget for the financial year 2022-23 in the Chhattisgarh Assembly. The initial responses to this move are reflecting hopes that the state will be free of any heavy financial burdens for at least the next decade, as the reinstatement of the scheme promise the state an expenditure save of Rs 1680 crore annually. The budget is being told to be the biggest one so far in Chhattisgarh, with a total allotment of rupees 1 lakh 12 thousand and 603 crores
The employees' unions and common citizens in the Raipur Collectorate premises expressed ample enthusiasm over the budget declarations telecasted live on a big screen here. Honoring Baghel with the title of 'Pension Man', the employees also celebrated the revival declaration.
The Old Pension Scheme, which was first implemented in Chhattisgarh in 2004, allows the employees to claim a pension under a pre-determined formula which gives them a half-of-their-last-drawn salary, along with an additional benefit of the revision of Dearness Relief (DR) twice a year. The new scheme, on the other hand, is based on contributions wherein an employee has to deposit 10 percent of the basic salary plus dearness allowance.
Earlier in February, Rajasthan CM Ashok Gehlot had also restored the scheme, which the experts had said to be a risky move capable of having heavy repercussions on the fiscal stability, potentially leading to state bankruptcy. After Gehlot's move of reviving the scheme despite its risky backdrops, the other state governments are seemingly facing political pressure to inculcate the same in their states. The Samajwadi Party had already declared that it may most probably revive the old pension scheme if it returns to power in Uttar Pradesh.
Opining on the revival of the scheme in Rajasthan and Chattisgarh, economist, and CEO of Value Research, Dhirendra Kumar said that it is quite a substantial move and would most probably be implemented in all the states eventually. "This is a huge migration from defined benefits because going back to the old pension system means all the benefits will be stated and nobody has to contribute anything there. I think that it is going to put a strain on the state government's finances to the extent that in 10 years' time, the government will have to spend most of its taxes on salaries and pensions," had said.
However, experts also believe that if this scheme would get implemented, the government could either have to cut on social sector expenditure or borrow more for paying for a higher pension bill under this scheme. "This is something which is non-negotiable. We have to pay the salaries and pensions on time and that too every month. This is not a productive expenditure because the government is not borrowing to spend on infrastructure or any other thing that plays the catalytic role in the economy. This is something which can make the state government bankrupt," the economist further added.
Budget presented in briefcase made of cow dung
Another thing that attracted attention in this budget session was the briefcase in which CM Bhupesh Baghel carried the state Budget documents to the Assembly. The briefcase was one of its kind, made up of cow dung, and carved with the words 'Gomay Vasate Lakshmi' in Sanskrit on it, which translates to 'goddess Lakshmi resides in cow dung'. This is the first time in the country that a Chief Minister has used a briefcase made of cow dung to present the budget, though leather or jute briefcases have been used for these purposes in the past. This briefcase has been prepared by the women of 'Ek Pahal' Mahila Self Help Group working in Raipur Gokul Dham Gauthan, over a span of 10 days. It also has some wooden material, with its handles and corners handcrafted by Kondagaon city group with Bastar art.
Also read: Rajasthan govt revives Old Pension Scheme, economist terms it 'unwise move'
