Chennai, Jan 4 (IANS) Former Union Finance Minister and Congress leader P. Chidambaram has said that the newly announced Tamil Nadu Assured Pension Scheme (TAPS) would place additional pressure on the State’s finances but can still be implemented successfully if backed by strong and disciplined financial management.

Responding to criticism surrounding the scheme, Chidambaram shared his views in a post on X, stressing that fiscal prudence and improved revenue mobilisation would be crucial to sustaining the ambitious pension programme. Chidambaram noted that full details of the Tamil Nadu Assured Pension Scheme had now been made public and acknowledged that the initiative would clearly increase the government’s long-term financial commitments.

However, he argued that such a burden need not be unmanageable if the State focused on efficient expenditure control, realistic budgeting, and better economic planning. He underlined the need for the government to avoid cost overruns in development projects and to ensure that estimates are adhered to strictly.

The Tamil Nadu government recently announced TAPS as a major welfare measure aimed at fulfilling a long-standing demand of government employees and teachers for pension benefits comparable to the Old Pension Scheme (OPS). The scheme was unveiled by Chief Minister M. K. Stalin, who described it as a commitment to social security and dignity for public servants after retirement.

Under TAPS, government employees will receive a pension equivalent to 50 per cent of their last drawn monthly salary upon retirement. Employees will contribute 10 per cent of their basic pay during their service period, while the remaining financial requirement will be fully borne by the State government. In case of the death of a pensioner, 60 per cent of the pension last drawn will be paid as family pension to eligible dependents.

While employee unions have largely welcomed the announcement, several economists and political opponents have raised concerns about the scheme’s fiscal sustainability.

Chidambaram pointed out that Tamil Nadu is already spending an estimated 21-22 per cent of its own tax revenue on pensions, highlighting the need for caution. He urged the government to prioritise increasing its own tax revenues and to make austerity a guiding principle across all departments.

As the State prepares to issue detailed guidelines and government orders to operationalise TAPS, the scheme is expected to remain a key subject of public and political debate, reflecting the broader challenge of balancing welfare commitments with long-term fiscal responsibility.

–IANS

aal/uk