Chennai, Jan 4 (NationPress) Former Union Finance Minister and Congress leader P. Chidambaram expressed that the recently launched Tamil Nadu Assured Pension Scheme (TAPS) may exert extra strain on the State's financial landscape, yet it can be executed effectively with robust and disciplined fiscal governance.

In response to the backlash regarding the scheme, Chidambaram articulated his insights in a post on X, emphasizing that maintaining fiscal prudence and enhancing revenue generation will be essential for the longevity of this ambitious pension initiative. He acknowledged that the complete details of the Tamil Nadu Assured Pension Scheme have been disclosed and recognized that this effort will undoubtedly elevate the government's long-term financial obligations.

Nonetheless, he contended that this burden can be manageable if the State prioritizes efficient expenditure oversight, practical budgeting, and superior economic planning. He highlighted the necessity for the government to prevent cost overruns in developmental ventures and to adhere strictly to budget estimates.

The Tamil Nadu government recently introduced TAPS as a significant welfare initiative aimed at meeting the enduring demand of government employees and teachers for pension benefits akin to the Old Pension Scheme (OPS). Chief Minister M. K. Stalin unveiled the scheme, asserting it as a pledge to social security and dignity for public servants post-retirement.

Under TAPS, government employees are set to receive a pension amounting to 50 percent of their last monthly salary upon retirement. Employees will contribute 10 percent of their basic pay during their tenure, while the State will entirely cover the remaining financial obligations. In the event of a pensioner's demise, 60 percent of the last drawn pension will be disbursed as a family pension to qualifying dependents.

While employee unions have largely embraced the announcement, various economists and political adversaries have voiced apprehensions regarding the scheme's fiscal viability.

Chidambaram pointed out that Tamil Nadu currently allocates approximately 21-22 percent of its own tax revenue towards pensions, signaling the imperative for caution. He urged the government to focus on augmenting its own tax revenues and to adopt austerity as a guiding principle across all sectors.

As the State gears up to release comprehensive guidelines and governmental orders to operationalize TAPS, the scheme is anticipated to remain a focal point of public and political discourse, illustrating the broader challenge of reconciling welfare commitments with enduring fiscal accountability.