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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