It is time for India’s 97% to speak up against the Old Pension Scheme

Few will dispute that the Indian economy’s recovery from the covid shock has been better than that of most other major economies, barring perhaps the US. If this admittedly K-shaped rebound is to continue apace and become more equitable, government spending must hold up; and, as a corollary, the health of government finances isn’t imperilled. Sadly, the ‘demands’ of electoral populism seem to be militating against fiscal prudence at a time we need it most: to use our limited resources for investments like health, education, law-and- order, roads, bridges, hospitals, etc. Instead, this poll season, we are witnessing a growing capitulation by the political class to what a vocal minority—government servants—wants. In a country inured to irresponsible poll promises of ‘freebies’ such as free water and electricity, and loan waivers, political parties have been promising the most dangerous of them all: A return to the earlier defined-benefit Old Pension Scheme (OPS) in lieu of the post-2004 defined-contribution New Pension System (NPS).