Aneetha Warusavitarana on pension reform

Advocata Research Analyst, Aneetha Warusavitarana joined Biz 1st In Focus to discuss the window of opportunity for pension reform, given that new labour reforms are in dicussion.

We all know that the government sector pension is non-contributory – the entire burden of payment is shouldered by the government – and given our fiscal position, this is an area where reform should be seriously considered.

However, with new labour reforms in discussion, there is now a window of opportunity for the government to bring in a much needed contributory pension scheme!

Aneetha Warusavitarana on the fiscal implications of state sector pensions

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.