English Release 28-February 2015
- Prime Minister's Office
- Text of PM’s reaction on Union General Budget 2015 to DD News
- PM accepts resignation of Dr. R.K. Pachauri from PM's Council on Climate Change
- PM welcomes Union Budget; terms it positive and pragmatic
- PM remembers the dedication, determination and untiring efforts of our scientists on National Science Day
- Department of Atomic Energy
- Physics Utsav-2015 at Bhabha Atomic Research Centre inaugurated by Dr. Sekhar Basu, Director, BARC
- Min for Develop. of North-East Region
- Union Budget fulfills aspirations of the North-Eastern Region and J&K, say Dr. Jitendra Singh
- Min of Defence
- Admiral RK Dhowan, Chief of the Naval Staff
pays Homage to Valiant Armed Forces Personnel
at Noida Shaheed Smarak
- Ministry of Finance
- Budget 2015-16 Marks the Beginning of Co-Operative Federalism and Empowerment of the States.
- Self Employment and Talent Utilisation (SETU) to be Established
- ATAL Innovation Mission (AIM) to be Set up
- Corporate Tax to be Reduced and GST to be Implemented
- National Investment and Infrastructure Fund to be Set up
- Five New Ultra-Mega Power Projects to be Set Up
Second Unit of Kudankulam Nuclear Power Station Will be Commissioned in 2015-16
- Facilities at Cultural World Heritage Sites are to be Restored: Arun Jaitley
- Arun Jaitley Says Development Should be as Green as Possible
- Facilities at Cultural World Heritage Sites are to be Restored: Arun Jaitley
- Education Sector Allocated Rs. 68968 Cr while Rural Development gets Rs 79526 Cr in the Year 2015-16
Task Force to Establish a Sector Neutral Financial Redressal Agency to be Set Up
- Public Debt Management Agency (PDMA) to be Set Up
- Government to Launch A National Skills Mission Soon
Aiims to be Launched in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam in 2015-16
- Forwards Markets Commission to be Merged with Sebi
- 8 Centrally Sponsored Schemes Delinked from Support of the Centre
- No Change in the Rate of Personal Income-Tax and The Rate of Tax for Companies on Income in Financial Year 2015-16
- A Trade Receivables Discounting System (TReDS) an Electronic Plateform for Financing of Trade Receivables of MSMES
- Monetising Gold
- Postal Network Spread Across the Country to be Used for Increasing Access to Formal Financial System
- Universal Social Security System for all Specially the Poor and the Under-Privileged:
- Employees Under the Employees Provident Fund(EPF) to be Provided two Options
- Shri Jaitley Announces Measures to Improve the Ease of Doing Business with
Focus to Improve Quality and Effectiveness of Activities Under MGNREGA
- Benefits to Middle Class Tax Payers in the Budget 2015-16
- ‘Act East’ Policy of the Government
- Micro Units Development Refinance Agency (MUDRA) Bank Set up for Small Enterprises
in Lending Priority was Given to SC/ST Enterprises
- Distinction Between Different types of Foreign Investments Done Away to Simplify the Procedure for Indian Companies to Attract Foreign Investment
- Jaitley’s Budget to Create Jobs through Revival of Growth and Investment with Promotion of Domestic Manufacturing and “Make In India”
- Paramparagat Krishi Vikas Yojna to be Fully Supported
- Tax Measures Announced to Promote Swachh Bharat Initiatives and Public Health.
- Finance Minister Shri Arun Jaitley Outlines Measures to Curb Black Money in Budget 2015-16
- Effective and Hassle-Free Agriculture Credit with a Special Focus on Small and Marginal Farmers
- Job Creation Through Revival of Growth and Investment and Promotion of Domestic Manufacturing and ‘Make in India’.
- Investment In Infrastructure To Go Up By Rs.70,000 Crore In Year 2015-16 Over Year 2014-15
- Black Money Bill in the Current Session
- Corporate Tax to be Reduced and GST to be Implemented;
- Eligible Donations to Swachh Bharat Kosh and Clean Ganga Fund to be 100% Deductible
- Effective and Optimal Allocation of Natural Resources and Financial Inclusion Among the Priorities of the Government Enunciated in Budget Speech
- Indirect Tax Proposals to Maximize Benefits to the Economy
- Min of Health and Family Welfare
- Budget is Pro-People, Balanced, Growth-Oriented, Inclusive and Progressive: Shri J P Nadd
- Min of Home Affairs
- Rajnath Singh congratulates Arun Jaitley
- Ministry of Tourism
- Tourist Visa on Arrival Scheme to be Extended to 150 Countries Gradually, Finance Ministe
- Min of Youth Affairs and Sports
- Sports Minister Sarbanand Sonowal congratulates Indian cricket team
Prime Minister's Office22-January, 2007 12:46 IST
|Prime Minister addresses CMs Conference on Pension Reforms|
|Referring to a number of infirmities in the present pension system, the Prime Minister, Dr. Manmohan Singh emphasized that there is a lot to be gained by moving forward and allowing a multiplicity of pension products delivered by a variety of agencies to be offered to our people.
Addressing the Chief Ministers’ Conference on Pension Reforms, here today, Dr. Singh pointed out that we do not, however, yet have a comprehensive social safety net focusing on old age income security covering the bulk of our population. “One major objective of the PFRDA Bill is to put in place the architecture and the delivery mechanism for pension schemes of these kinds”, he said. The suggestion that is being considered is that, pending a resolution of all issues related to the PFRDA Bill, these accumulated funds may be allowed to be invested in accordance with the investment pattern prescribed for non-government Provident Funds, the Prime Minister added.
Dr. Singh stressed the need for better management of pension liabilities so that state finances can be managed in a healthy, sustainable way in future by pointing out that the rising pension bills at all levels of Government would be increasingly difficult to finance in future, given the other demands that are there on our resources, particularly for enhancing our expenditures on essential social sectors such as health, education and rural development.
Shri Pranab Mukherjee, Minister of External Affairs, Shri A.K. Antony, Minister of Defence, Shri Shivraj Patil, Minister of Home Affairs, Shri Oscar Fernandes, Minister of Labour, Chief Ministers of several States and Finance Ministers of States were present on the occasion.
Following is the text of the Prime Minister’s address on the occasion:
“I am happy to be here at this conference on pension related issues. The Finance Minister has given us all the background for convening this conference and the purpose that we hope it will serve. I look forward to hearing the views of the Chief Ministers and Finance Ministers of States on these vital issues.
The Finance Minister has dwelt at length on the fiscal implications of the existing pension system for government employees. The rising pension bills at all levels of government would be increasingly difficult to finance in future, given the other demands that are there on our resources, particularly for enhancing our expenditures on essential social sectors such as health, education and rural development. Even in the states, all of you must be faced with the rising cost of pension liabilities which compete for your limited resources. All of you have large expenditure obligations to meet for ensuring the rapid development of your states. Therefore, we need better management of our pension liabilities so that state finances can be managed in a healthy, sustainable way in future. This is a very important basis for the changes in the pension system.
The other important reason for calling this meeting is that since 2004, the New Pension System is already in place for all freshly recruited Central Government employees and for employees in many state governments. In the last 3 years, the contributions of these new employees have accumulated in the Public Account. These get a fixed annual return of 8% only. The suggestion that is being considered is that, pending a resolution of all issues related to the PFRDA Bill, these accumulated funds may be allowed to be invested in accordance with the investment pattern prescribed for non-government Provident Funds. The pattern permitted for them has been circulated and will fetch a return superior to that given by the government at present without compromising the safety factor.
I would however, like to draw your attention to another equally important dimension of pension reforms, namely, the availability of pension instruments and schemes for the common man at large. India will face huge challenges in future due to the level and speed of ageing of the population. The life expectancy at age 60, which is around 16 years at present, is expected to rise rapidly, requiring longer periods of retirement support for the elderly. This becomes particularly acute for the unorganized sector, which is by far the major employer of our labour force. This large labour force functions without any options for their old age. At present, only 11% of the workforce is covered under some form of pension schemes. Within the organized sector, the coverage is accounted for largely by government employees. Therefore, workers in the unorganized sector, constituting 90% of the workforce, need a comprehensive pension system which they can subscribe to.
Government of India has a number of schemes to address problems of deprivation when people are of working age. Our Government has launched a National Rural Employment Guarantee Programme (NREGP) which we have implemented initially in 200 districts and plan to expand to cover all districts. The NREGP aims to provide a social safety net by guaranteeing employment in rural areas. This social safety net is available as long as the worker is in the productive age group.
There are other programmes and policies that have elements of the social safety net such as the Targeted Public Distribution System, the Indira Awaas Yojana, the National Rural Health Mission and various types of crop and livestock insurance. We do not, however, yet have a comprehensive social safety net focusing on old age income security covering the bulk of our population.
One major objective of the PFRDA Bill is to put in place the architecture and the delivery mechanism for pension schemes of these kinds. It is my belief that there is a lot to be gained by moving forward and allowing a multiplicity of pension products delivered by a variety of agencies to be offered to our people.
India is on the cusp of its demographic evolution and will miss out on a wonderful opportunity to put in place the social safety nets which an ageing population will soon demand. We should therefore collectively address this important issue, so that we can grasp this opportunity before it becomes an insurmountable problem.”
(Release ID :24234)