Former Union Finance Minister and Congress leader P. Chidambaram expressed his views on the newly introduced Tamil Nadu Assured Pension Scheme (TAPS). He mentioned that while the scheme would add financial pressure to the state, it could succeed with strong financial management. Chidambaram emphasized the importance of fiscal prudence and enhanced revenue generation to sustain the pension initiative.
Chidambaram highlighted the necessity for efficient spending control, realistic budgeting, and improved economic planning to manage the additional financial burden effectively. He stressed the importance of avoiding cost overruns in development projects and ensuring adherence to budget estimates. The Tamil Nadu Assured Pension Scheme, recently unveiled by Chief Minister M. K. Stalin, aims to provide pension benefits equivalent to the Old Pension Scheme (OPS) for government employees and teachers.
Under TAPS, retiring government employees will receive a pension equal to 50% of their last monthly salary. Employees will contribute 10% of their basic pay during their service tenure, with the state government covering the remaining financial obligations. In the event of a pensioner’s demise, eligible dependents will receive 60% of the last drawn pension as a family pension. While the scheme has been welcomed by employee unions, concerns have been raised by economists and political opponents regarding its financial sustainability.
Chidambaram noted that Tamil Nadu currently allocates around 21-22% of its tax revenue to pensions, emphasizing the need for caution. He urged the government to focus on enhancing tax revenues and implementing austerity measures across all departments. As the state prepares to issue detailed guidelines for TAPS, the scheme is expected to remain a significant topic of public and political discussion, reflecting the challenge of balancing welfare commitments with long-term fiscal prudence.
