Pension reform reversal

The fiscal burden of states will increase over time

In large and diverse countries like India, it is often difficult to push economic reform with long-term potential benefits. It is thus disappointing to see hard-won reforms being reversed with significant long-term implications. One such reversal is pension for government employees. Several states such as Rajasthan, Chhattisgarh, and Jharkhand have decided to go back to the Old Pension Scheme (OPS). At a time when life expectancy is increasing, thanks to improving standards of living and medical care, the outgo on account of pension will inevitably increase and put pressure on government finances. It will leave that much less for building