Chidambaram Warns Of TAPS Financial Burden

Chennai: Former Union Finance Minister P. Chidambaram said on Sunday that the recently launched Tamil Nadu Assured Pension Scheme (TAPS) will increase the financial burden on the State government. However, he said the scheme can still be implemented successfully if the government follows strict financial discipline and careful planning.

Mr. Chidambaram explained that pension schemes involve long-term spending commitments and can put pressure on government finances if they are not managed properly. He said the State must make sure it has enough steady income to meet the costs of the scheme in the coming years.

He stressed the importance of financial prudence, which includes controlling unnecessary expenses, improving tax collection, and planning future spending wisely. According to him, without such steps, the added cost of the pension scheme could affect other development and welfare programmes.

While supporting the idea of providing financial security to government employees after retirement, Mr. Chidambaram said that welfare schemes should always be backed by strong financial management. He added that with disciplined spending and responsible budgeting, Tamil Nadu can run the pension scheme without damaging its financial health.

He concluded by saying that if the government remains cautious and follows sound financial practices, the Tamil Nadu Assured Pension Scheme can be implemented in a sustainable manner.