Economic Survey 2023: Restoration of Old pension scheme will make fiscal situation unstable, says CEA Nageswaran

Jan 31, 2023

New Delhi, Jan 31 (ANI): Restoration of the Old Pension Scheme (OPS) by some states may temporarily save cash flows for the state governments but obviously it postpones the problem to a future date and makes the situation somewhat unsustainable or unstable, said Chief Economic Advisor V Anantha Nageswaran on January 31 while speaking to ANI. CEA V Anantha Nageswaran said, “We need to defer to the views of experienced former policymakers like Mr Montek Singh Ahluwalia, who have already opined on this matter. Reserve Bank of India (RBI) has also expressed its concern about OPS, so it is difficult for me to add to anything more than what Mr Ahluwalia or RBI has said on this matter. OPS may temporarily save cash flows for the state governments, but obviously, it postpones the problem to a future date and makes the fiscal situation unsustainable or unstable. Congress-ruled states Rajasthan and Himachal Pradesh have restored the OPS and there is a demand to restore OPS is also being raised in Maharashtra, Tamil Nadu, and some other states.”