The Modi government has introduced the Unified Pension Scheme (UPS), designed to secure the financial future of government employees while maintaining economic stability. Unlike the Old Pension Scheme (OPS), which risked bankrupting state governments, the UPS offers a sustainable solution that balances pension security with fiscal responsibility. By incorporating contributions from both the government and employees, the UPS ensures a robust pension system without compromising essential services. This scheme reflects the government’s broader strategy of financial inclusivity and stability.
#UnifiedPensionScheme #EconomicStability #PensionReform #ModiGovernment
#UnifiedPensionScheme #EconomicStability #PensionReform #ModiGovernment
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00:00In a major development, the Modi government has launched the Unified Pension Scheme, a
00:09significant step towards securing the financial future of government employees while maintaining
00:14the economic stability of the nation. We delve deep into what this new scheme means for India
00:20and why it is being hailed as a sound economic decision.
00:25The Unified Pension Scheme or UPS is being touted as a pension promise fulfilled by the
00:29Modi government, but with a twist. Unlike the old pension scheme, which had the potential
00:35to bankrupt state governments by offering guaranteed payouts, the UPS is designed to
00:40be economically sustainable. It avoids the financial pitfalls of the past where governments
00:46struggle to meet their obligations, leading to a lack of funds for essential services
00:51like social welfare and infrastructure. For example, my wife is a doctor, she would be
00:56getting a basic pay of one lakh rupees. So that one lakh becomes her basic pay. And then
01:02you have a dearness allowance, which is indexation. Indexation is nothing else but inflation adjustment
01:10of that one lakh. So first year when she suppose gets it, suppose she retires this year, and
01:17if she was in the old pension scheme, she would probably suppose her basic pay is one
01:23lakh, then she would get a one lakh rupee plus 50% DA which is applicable as on date,
01:32she would get one and a half lakh rupees as pension. That is how it will be.
01:37The old scheme heavily promoted by opposition parties like the Congress was a ticking time
01:43bomb. In fact, it brought several states to the brink of financial collapse during the
01:4880s, 90s and the early 2000s. The UPS, however, is different. It is a well-balanced approach
01:55that ensures pensions are secure without compromising the government's ability to function.
02:02The Unified Pension Scheme addresses concerns from employees while maintaining fiscal responsibility.
02:07Under this new system, both the government and employees contribute to the pension fund,
02:12creating a sustainable model that offers security without risking the economic health of the
02:17nation. This scheme is a part of the Modi government's broader strategy to ensure financial
02:22inclusivity and stability. It complements other welfare initiatives like the Pradhan
02:28Mantri Jan Dhan Yojana, which has brought banking to the unbanked and the Ayushman Bharat
02:33scheme providing health insurance to millions. These programs work together to create a safety
02:39net for India's vast population.
02:42UPS is being done for central government employees, which are 67 odd lakhs or something of that
02:50kind, which are there. And then there will be state government employees, maybe another
02:5680-90 lakhs. So we're talking about maybe one, one and a half crore people at max, when we are
03:02talking about this out of the 140 crores that we have, right. So, first of all, it is as far as
03:10UPS is concerned, it is largely for the government servers.
03:15India's size and diversity demand a pension system that is both flexible and reliable. The UPS
03:21achieves this by balancing the interests of retirees with the fiscal realities of the
03:26governance. It reflects the Modi government's commitment to maintaining economic stability
03:31while ensuring social security for its citizens. The Unified Pension Scheme represents a
03:38thoughtful approach to pension reform in India. It's not just about securing the future of the
03:43government employees, but also about ensuring the financial health of the nation. As the
03:48country continues to develop, the UPS will play a crucial role in maintaining this balance.
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