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The recent debate surrounding the Unified Pension Scheme (UPS) has taken center stage in Indian politics, with Finance Minister Nirmala Sitharaman firmly defending the government's position against criticism from the Congress party. Sitharaman refuted claims of the government executing a series of U-turns, particularly concerning the UPS and indexation for capital gains on property, asserting that the revised mechanism represents a 'new package' rather than a rollback. She emphasized that the UPS is distinct from both the old pension scheme and the National Pension System (NPS), highlighting its unique features and lessons learned from the NPS implementation.
Sitharaman's defense of the UPS comes amidst accusations from the Congress party that the government is backtracking on its promises. The Congress, particularly active in Rajasthan and Himachal Pradesh, has been advocating for the restoration of the Old Pension Scheme (OPS). However, Sitharaman dismissed these efforts as mere announcements lacking substance, criticizing the Congress for its 'nara-driven' approach and its dwindling governance experience. She pointed out that the Congress, having been in opposition for a considerable time, lacks the necessary experience in managing government affairs.
Sitharaman further addressed concerns about the withdrawal of indexation benefits for capital gains on property, clarifying that it would not have negatively impacted property sellers. She stressed that the government, based on feedback from the middle class, decided to offer a choice between the two regimes, allowing property sellers to select the option best suited to their circumstances. Similarly, Sitharaman assured that the draft broadcast bill would be revisited and presented in an improved form, highlighting the government's responsiveness to public feedback.
In her defense of the UPS, Sitharaman highlighted its attractiveness for both states and employees. She asserted that the scheme has been designed to ensure a guaranteed 50% pension and other benefits for employees, while simultaneously minimizing the financial burden on the government. Crucially, she emphasized that even employees with less than 25 years of service would be eligible for the assured 50% pension, proportional to their years of service. This assurance addresses a major concern among government employees, particularly those with shorter tenures.
Sitharaman also addressed calls for similar pension packages to be extended to the private sector. She expressed her expectation that companies would follow suit, mirroring the trend seen after the introduction of the NPS, where several private companies adopted the scheme for their employees. This suggests a potential ripple effect, with the government's initiative potentially prompting private sector companies to offer comparable pension benefits to their workforce.
Source: FM Sitharaman counters Congress, says UPS 'new package', not rollback