There is no change in pension rules, says Sitharaman
ENS ECONOMIC BUREAU @ New Delhi
Finance Minister Nirmala Sitharaman, during her reply on the Finance Bill, 2025, and the Appropriation (No 3) Bill, 2025, in the Rajya Sabha, clarified that the recent amendments to pension rules are only a validation of existing policies and do not alter benefits for civil or defense pensioners.
She clarified that the 6th Central Pay Commission (CPC) had introduced a distinction between pensioners based on the January 1, 2006, cutoff, which was upheld by the Congress-led UPA government. However, the 7th CPC has since ensured parity between pre-2016 and post-2016 retirees. The upcoming 8th CPC, approved by Prime Minister Narendra Modi in January 2025, is expected to further revise salaries and benefits for government employees and pensioners.
She highlighted the government’s commitment to tax relief, saying that the new income tax threshold has been set at ₹12 lakh, ensuring that middle-class taxpayers benefit from reduced financial burdens. She credited the PM for prioritising tax reforms to honour the contributions of taxpayers.
Defending the success of Digital Public Infrastructure (DPI), the FM addressed concerns raised in 2017 about digital transactions being impractical in rural India. She said widespread digital adoption under Modi’s leadership has proven skeptics wrong, making financial transactions seamless even in remote areas.
To bring fiscal deficit below 4.5%
The finance minister assured that the government remained committed to bringing fiscal deficit below 4.5% in the coming year.
The FM said the government remained committed to bringing fiscal deficit below 4.5% in the coming year. She cited rise in state allocations, mainly for Kerala and Tamil Nadu, which have received 239% and 207% more funds, respectively, compared to the UPA era.
Reaffirming the government’s dedication to public welfare, she cited key schemes like PM Awas Yojana, Jal Jeevan Mission, and Ayushman Bharat, emphasising that “Achhe Din” (good days) have arrived for millions, except for those who associate governance with corruption.
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