Contrary to popular perception, the states that have opted for the old pension system (OPS) are now incurring less proportion of their revenue receipts on the pension payout than they had spent when they were under the new pension system (NPS) for employees who have joined from January 1, 2004.
For instance, Chhatisgarh joined OPS from 2022-23. It is projected to spend 6.9 per cent of its revenue receipts on pension pay out (Revised Estimates) in that year against 9.4 per cent in 2021-22. This proportion is slightly projected to increase to 7 per cent for 2023-24 (Budget Estimates).
The state used to spend a proportion of its revenue receipts on pension expenditure in double digits in 2019-20 and 2020-21.