Advocata Research Analyst, Aneetha Warusavitarana joined Biz 1st In Focus to discuss the fiscal implications of providing pensions for state sector employees. Unlike private sector EPF/ETF payments, government sector employees do not contribute a single rupee towards their pensions. In 2018 itself, the Finance Ministry spent Rs. 194 billion on pension payments. She explores the question of rewarding inefficiency that plagues the government sector with a guaranteed (tax-money funded) pension.
