Social protection schemes are an integral aspect of a welfare economy; however, the principles of fiscal prudence cannot be ignored. Discuss, with special reference to Old Pension Scheme (OPS).
Main Body
Social welfare schemes are mandatory as per Directive principles of state policy(10) and by right of fundamental rights III Necessity for welfare economy is Old Pension Scheme (Half of full drawn salary): → Promotes growth of geriatric sector / longevity dividend → Psychological independence in career choice (low corruption) → Decreases dependence (50% dependent on children) → Increases wages and personal income (No initial payout for pension) Issue of fiscal prudence: i) High burden on state (50% funds for defense → pension) = Capital expenditure revenue ii) Lack of financial education among people = Investment in markets ↓ iii) Difficulty in ascertaining necessity of h+f pension salary (HoH has no qualitative basis for deciding) iv) Straddling of old (Social security, 1290) Investment by private → Financial prudence of public and state
gender → neutral → Tax incentives NPS, replacing OPS, is necessary as observed by many countries changing their pension laws France
— Tharun Teja · AIR 123
Conclusion
15 words
Tharun Teja
Economic Development
Government Budgeting
Social Protection and Fiscal Policy
167
Total words
1
Paragraphs
analytical, structured
Tone