Date:26/02/2005 URL: http://www.thehindubusinessline.com/2005/02/26/stories/2005022602470400.htm

Back Pension liabilities becoming burdensome

Our Bureau

New Delhi , Feb. 25

THE Government's efforts to bring about a new pension structure in the backdrop of mounting pension liabilities of the Centre and the States have been strongly backed by the Economic Survey.

"The pressure of pensions on Central and State finances is becoming increasingly burdensome," the Survey said. It pointed out that the total pension outgo for Central Government employees increased from Rs 2,138 crore in 1990-91 to Rs 15,367 crore in 2003-04.

The rise has been equally sharp for States.

"The annual average increase in pension outgo for States during the late 1990s was 27 per cent. Pension expenditure of States as a proportion of revenue receipts rose from 5.4 per cent in 1990-91 to more than 10 per cent in 2000-01," the Survey said.