Reports indicate that the One Rank, One Pension (OROP) scheme implementation, at least, may well get deferred. Here are top 5 reasons why: By: FE Bureau | New Delhi
One Rank, One Pension (OROP) scheme: "We have the fiscal space to be able to absorb this without having any impact on the fiscal deficit target, which is 3.9 per cent. So, we have taken that into account as we have prepared the One Rank, One Pension (OROP) scheme,” Minister of State for Finance Jayant Sinha has said. (Reuters)
The PM Narendra Modi-led NDA government of India had decided to implement OROP (One Rank, One Pension) and Defence Minister Manohar Parrikar on Monday said the notification on OROP will be issued before Diwali. “Notification on OROP will be issued once Election Commission (EC) code in Bihar polls gets over. I will try to issue notification before Diwali,” Parrikar has said. However, reports now indicate that the OROP scheme, the implementation part at least, may get deferred. Here are top 5 reasons why:
1. The Centre’s weak finances may force it to defer the implementation of the One Rank, One Pension (OROP) scheme for the armed forces to the next fiscal year.
2. Under OROP, a uniform pension will be paid to armed forces personnel, who retire at the same rank after the same length of service, regardless of their date of retirement. Additionally, the government announced that these benefits would be given retrospectively from July 1, 2014, with arrears to be paid in four half-yearly installments, with pensions re-fixed every five years. All of that adds to costs, and it is causing govt to pause for thought.
3. The OROP scheme will add to the government’s fiscal burden due to a higher pension outgo. It estimated that the one-off hit due to arrears could be Rs 10,000-Rs 12,000 crore in FY16, if the scheme is implemented this year. The recurring annual additional cost will be in the region of Rs 8,000-RS 10,000 crore, and could increase in the future after pay structure is revised based on the award of 7th Pay Commission. The Pay Commission report, which is due by December end, would reset the salaries and pensions of central government employees.
4. With a potentially lower divestment proceed (possibly half of the target of Rs 69,500 crore) and an anticipated shortfall in tax collections of about Rs 50,000 crore putting the FY16 fiscal deficit goal of 3.9% of GDP difficult, the government seems to have made up its mind to shift OROP implementation to next year.
5. The government is yet to set up a one-member judicial committee to examine the interests of retirees of different periods, different ranks and address inter-service issues of the three armed forces for OROP. The panel is supposed to give its report in six months.
2. Under OROP, a uniform pension will be paid to armed forces personnel, who retire at the same rank after the same length of service, regardless of their date of retirement. Additionally, the government announced that these benefits would be given retrospectively from July 1, 2014, with arrears to be paid in four half-yearly installments, with pensions re-fixed every five years. All of that adds to costs, and it is causing govt to pause for thought.
3. The OROP scheme will add to the government’s fiscal burden due to a higher pension outgo. It estimated that the one-off hit due to arrears could be Rs 10,000-Rs 12,000 crore in FY16, if the scheme is implemented this year. The recurring annual additional cost will be in the region of Rs 8,000-RS 10,000 crore, and could increase in the future after pay structure is revised based on the award of 7th Pay Commission. The Pay Commission report, which is due by December end, would reset the salaries and pensions of central government employees.
4. With a potentially lower divestment proceed (possibly half of the target of Rs 69,500 crore) and an anticipated shortfall in tax collections of about Rs 50,000 crore putting the FY16 fiscal deficit goal of 3.9% of GDP difficult, the government seems to have made up its mind to shift OROP implementation to next year.
5. The government is yet to set up a one-member judicial committee to examine the interests of retirees of different periods, different ranks and address inter-service issues of the three armed forces for OROP. The panel is supposed to give its report in six months.
First Published on October 28, 2015 1:28 pm
By: FE Bureau | New Delhi |
[ Financial Express ] October 29, 2015 9:02 AM
There is only one reason. .Government don't have money.
ReplyDeleteThere is only one reason. .Government don't have money.
ReplyDeleteOnly one reason. Political will is lacking. NFU of Rs 17,000 crs can be handled for ever but OROP gets stuck in the gullet!
ReplyDeletedear,
ReplyDelete1. NOW PARAMILITARY FORCES HAVE GOT NFU From Delhi High Court & Govt will take them too in organized sector
A] UP-GRADATION FROM FORCES TOO
B]They WILL GET ARREARS FOR 10 YEARS FROM 1/1/2006 todate
C] DURING PEACE TIME THEY ( cops) WILL TAKE REST & FORCES WILL BE FACING ODDS OF AID TO CIVIL POWER
D] DURING WAR TIME THEY (cops) WILL FALL BACK & FORCES WILL FACE BULLETS & BOMBS
E] THEY (cops) WILL SERVE TILL 60 YRS & EARN MORE THAN FORCES
F] TIME SCALE (cops)WILL GET LT GEN PENSION
2 MILITARY FORCES WILL SUFFER Serving/Retired & widows will suffer.
A] DUE TO FURTHER DE-GRADATION
]MORALE Of Forces WILL GO TO BOOTS
C] INTER SE SENIORITY WILL GO FOR SIX & One time elite officer corner will become security guard corner.
D] Forces will LOOSE MONEY OF NFU FOR 10 YEARS. Serving /Retired & widows will not get their Rightful dues.
E] Forces will FACE Automatic DEMOTION IN INTER SE SENIORITY
F] MAJOR STATUS WILL BE LOWER THAN CLASS II COP(Sub Inspector)
G[ SELECTION GRADE Col WILL GET degradation plus PEANUT PENSION & TIME SCALE COPS WILL GET GEN PENSION
WHAT A WORST TREATMENT TO BRAVE SOLDIERS WHO PERFORM DUTIES WITH UTMOST LOYALTY & WILL SHED BLOOD FOR SAFETY OF NATION WITHOUT THINKING FOR A MOMENT
REGARDS
COL LAMBA [ ONE MAN ARMY]
dear,
ReplyDelete1. NOW PARAMILITARY FORCES HAVE GOT NFU From Delhi High Court & Govt will take them too in organized sector
A] UP-GRADATION FROM FORCES TOO
B]They WILL GET ARREARS FOR 10 YEARS FROM 1/1/2006 todate
C] DURING PEACE TIME THEY ( cops) WILL TAKE REST & FORCES WILL BE FACING ODDS OF AID TO CIVIL POWER
D] DURING WAR TIME THEY (cops) WILL FALL BACK & FORCES WILL FACE BULLETS & BOMBS
E] THEY (cops) WILL SERVE TILL 60 YRS & EARN MORE THAN FORCES
F] TIME SCALE (cops)WILL GET LT GEN PENSION
2 MILITARY FORCES WILL SUFFER Serving/Retired & widows will suffer.
A] DUE TO FURTHER DE-GRADATION
]MORALE Of Forces WILL GO TO BOOTS
C] INTER SE SENIORITY WILL GO FOR SIX & One time elite officer corner will become security guard corner.
D] Forces will LOOSE MONEY OF NFU FOR 10 YEARS. Serving /Retired & widows will not get their Rightful dues.
E] Forces will FACE Automatic DEMOTION IN INTER SE SENIORITY
F] MAJOR STATUS WILL BE LOWER THAN CLASS II COP(Sub Inspector)
G[ SELECTION GRADE Col WILL GET degradation plus PEANUT PENSION & TIME SCALE COPS WILL GET GEN PENSION
WHAT A WORST TREATMENT TO BRAVE SOLDIERS WHO PERFORM DUTIES WITH UTMOST LOYALTY & WILL SHED BLOOD FOR SAFETY OF NATION WITHOUT THINKING FOR A MOMENT
REGARDS
COL LAMBA [ ONE MAN ARMY]
Col. Lamba Sir, Salute to you to write true story being illtreated to soldiers/veterans. Sir this writing should go to PM. Modi Ji and Bureaucrats/all over to india generation/all press and newspapers, magzines/ any booklets/papers could published it. This is immortal writing. Thanks you. Hony, Naib Sub Bachan Singh again Salute to You. Sir please let me know about Hony. Naib Sub Pnsion as Naib sub as per 6th CPC is going through otherwise. lot of thanks
ReplyDeleteLamba Sir you should works with Gen. Satbir Singh,s team to serve 'OROP' to Veterans as well as India as with OROP morale of soldiers will be strong and they die for India, otherwise enough is enough. Thanks
ReplyDelete