In a bid to diffuse the pension time-bomb of state governments, the Reserve Bank of India (RBI) has set up a high-level committee headed by B.K. Bhattacharya, a senior official in the ministry of finance to review the growing financial burden on various states on account of pension funding.Bhattacharya, along with other members including top officials of the central bank, is currently visiting different states to hold consultation with state finance ministers and finance secretaries regarding the growing financial burden of their respective states.The committee is suggesting the state governments to bring about some reforms in granting of pension which has of late become the key to the financial condition of the state. The committee is likely to submit its report regarding the pension system in the state by the end of September. The RBI has preferred to take the initiative on state pension as it handles the borrowing programmes of state governments and is aware of the worsening financial condition of states.Indicating the alarming level of the state pension scenario, figures show that pension liabilities of all states taken together, estimated at Rs 30,396 crore, are almost double the Centre’s pension liabilities, estimated at Rs 15,035 crore in the current year. This year, there may be many more states opting for deferred payment of pension and other post-retirement benefits.
