So, lets talk about why there is a lot of debts on governments of many states. Debts on governments of many states increases due to many reasons that I am going to discuss in this chapter. Freebies and Old Pension Scheme are the main reasons of this failures. Freebies are the free amenities that are provided to people like free food, free electricity, free education and free water facilities, these freebies cause a heavy burden on the pockets of the government. Old Pension scheme are the reasons where even though new pension scheme is introduced by Atal Bhari government still some of the states follow old Pension schemes, a big problem in old pension scheme is that there is no provision of fund system where there is contribution from both employer and employee. But in New Pension Scheme there is both contribution of 14% of basic salary from both employer and employee so total 28%. In this way new pension scheme eradicates burden from government as well as the new pension scheme also provides investment opportunities to the employees. There has been a freebie culture and old pension vibe in non BJP states to gain vote bank. So as citizens we should always look for the betterment of our country and avoid the freebie culture and adopt the NPS for all employees in all states for government to spend less on revenue expenditure and increase revenue through taxes for the betterment of the states to help sustain businesses and country in the form of subsidy, increase forex reserve and increase capital expenditure from the government side.
No comments:
Post a Comment