Poll debacle: Shinde may have to take a call on OPS

Government employees and teachers have been demanding that the state revive OPS which was discontinued in 2005. The government contention, on the other hand, has been that it would cost the state exchequer a whopping ₹55,000 crore to cover around 6 lakh pensioners.

According to officials from the finance department, OPS will push the expenditure by at least 35%, leaving hardly any funds for development works.

“We have been spending more than ₹41,000 crore annually on new pension scheme since OPS was stopped on November 1, 2005. Bringing OPS back would cost the state exchequer ₹55,000 crore, which in turn will take a toll on development works. Currently, we spend a little over 30% of the revenue receipts on development works but implementation of OPS will leave no money on that head,” an official, who refused to be named, said.

Besides, it would not be possible to relaunch OPS immediately, the BJP leader, who was quoted above, said. “There needs to be a proper deliberation within the government if they are ready to bear the additional burden. An announcement in this regard during the budget session is unlikely.”

Vishwas Katkar, general secretary, Rajya Sarkari Karmachari Madhyavarti Sanghtana, claimed that the state had been giving false figures.

“Fadnavis said a whopping ₹1.10 lakh crore would be spent annually from the state’s kitty if OPS was brought back. But this is an inflated figure as it would be the expenditure over the next 10 years. According to our calculations, the burden on the state exchequer will hardly be anything as the economy grows around 12% per year,” he said.

HT PHOTO It’s maybe time for Shinde, Fadnavis to do a rethink on OPS.