Old pension scheme: Is politics trumping economics?
The pension reform had the backing of both BJP and Congress. Now, the political parties are using it as a tool to gain power in certain states. While this may be good politics, is it good economics?
A by-product of the financial crisis of the 1990s, pension reform had the backing of both the BJP and the Congress -- the two main political parties of the country. While NDA implemented it in early 2000, Congress gave it statutory support after coming to power later. But now, it seems, Congress and some other parties want to turn the clock back. Four states under their rule have already switched to the old pension scheme. And the parties are using it as a political tool to gain power in other states too. While this may prove to be good politics, is it good economics? Let us find out in this podcast.
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