Govt will not revive old pension scheme, asserts Fadnavis

Fadnavis, who is also the state Finance Minister, told the state Assembly that the Maharashtra government will have to keep fiscal health in mind in the larger interest of the state.

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Deputy Chief Minister Devendra Fadnavis on Wednesday informed the state Legislative Assembly that the government will not revive the old pension scheme.

His remark came amid talks among various state governments about the scheme revival.

“The government will not revive the old pension scheme. Its reinstatement will put an additional burden of Rs 1.10 lakh crore on the state exchequer. The estimate was made by the previous Maha Vikas

Aghadi government and we have taken a note of it,” he said, replying to a query raised by BJP MLA Ram Satpute.

Fadnavis, who is also the state Finance Minister, told the state Assembly that the Maharashtra government will have to keep fiscal health in mind in the larger interest of the state.

He also congratulated the leader of Opposition, Ajit Pawar, for a similar stand when the latter was the state finance minister during the previous MVA government. In March 2020, Pawar had told the state Council that a sum of Rs 1.51 lakh crore out of Maharashtra’s total annual income of Rs 4 lakh crore was spent on the salaries of staff and their pensions. There was no reason for the state to revert to the old pension scheme, he had added.

Employees receive defined pension benefits under the old pension scheme. According to this, an employee has been legally entitled to a pension that is equivalent to 50 per cent of their last wage. The new pension scheme — also known as the National Pension Scheme — is, meanwhile, market linked, which is a defined contribution product, and the contributions are accumulated over a period of time till the retirement grows with market-linked returns. Government employees make a monthly contribution at the rate of 10 per cent of their salary, and a matching contribution is paid by the government. For central government employees, the employer’s contribution rate is enhanced to 14 per cent.

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The Congress has been aggressively raising demands for the same in poll-bound states and the Congress-ruled Chhattisgarh and Rajasthan have already reverted to the old pension scheme. The political party has also won the recently held Himachal Pradesh elections, where it had promised the reinstatement of the old pension scheme.

‘Won’t give more schools govt aid’

Education Minister Deepak Kesarkar, meanwhile, informed the Maharashtra Assembly that the state government decided to “not grant financial aid to additional schools”.

When MLAs asked about granting financial support to non-aided schools, Fadnavis said that when the decision to grant aid to schools was taken in 2019, only 350 schools were beneficiaries, which has now increased to 3,900 schools in two years.

“Even if we are spending Rs 1,100 crore today, we will end up spending Rs 5,000 crore in the next three years,” said Fadnavis, adding that no more schools will be included from now onwards.

Alok Deshpande

Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues. Expertise Current Role: Special Correspondent, The Indian Express, Mumbai. Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands'). Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including: State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance. Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana). Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides). Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits. Unique Credentials & Trustworthiness Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects. Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission. Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards. Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra. He tweets @alokdesh ... Read More

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