On August 25, 2024, Congress President Mallikarjun Kharge took a critical stance against the Narendra Modi government's recent policy reversal regarding pensions, attributing the shift to growing pressure from the Opposition. His comments were made in the context of the Union Cabinet's recent approval of the Unified Pension Scheme (UPS), a new policy designed to provide guaranteed pensions to government employees.
In a pointed tweet, Kharge suggested that the “U” in UPS symbolically stands for the Modi government's numerous "U-turns" on key policy decisions. He credited the resurgence of the Opposition, particularly after the Lok Sabha elections, for influencing the government to reverse its stance on several contentious issues. Kharge's tweet read, "The ‘U’ in UPS stands for Modi Govt’s U-turns. Post June 4, the power of the people has prevailed over the arrogance of power of the Prime Minister." He enumerated various decisions that had been reversed or adjusted following public and political backlash. These included the rollback of certain Budget provisions related to Long Term Capital Gain/Indexation, the referral of the Waqf bill to a Joint Parliamentary Committee, the withdrawal of the draft Broadcasting bill, and the cancellation of plans for lateral entry into bureaucracy.
The Unified Pension Scheme (UPS) represents a significant policy shift for the Modi administration. Announced on August 24, 2024, the UPS aims to ensure that government employees receive a guaranteed pension. Under this scheme, employees will be eligible for an assured pension equal to 50 percent of the average basic pay from the last 12 months before retirement, provided they have completed at least 25 years of service. Additionally, the scheme guarantees a minimum pension of Rs 10,000 per month for those retiring after a minimum of 10 years of service.
This move comes in response to the actions of several non-BJP states that had opted to revert to the Old Pension Scheme (OPS), rejecting the New Pension Scheme (NPS). The OPS provides retired government employees with 50 percent of their last drawn salary as a monthly pension, which increases in line with hikes in Dearness Allowance (DA) rates. However, the OPS has been criticized for its fiscal unsustainability due to its non-contributory nature, which places a growing financial burden on the state.
The introduction of the UPS is seen as an attempt by the government to address these criticisms and respond to the demands of employees and political leaders advocating for better pension benefits. The UPS contrasts with the NPS, which has been criticized for providing lower pension benefits and lacking guaranteed returns.
Kharge’s remarks highlight the political dynamics influencing government policies and the impact of public and opposition pressure on decision-making. The government's response to this pressure reflects a broader trend of policy adjustments in reaction to political and social forces, demonstrating the complex interplay between public sentiment, electoral outcomes, and policy implementation.
