Thiruvananthapuram: The State Government is actively considering the 11th Kerala Pay Revision Commission’s recommendation to raise the pension age of staff from 56 years to 57.
If the LDF and CPM take a positive decision on the matter then finance minister K N Balagopal will announce the increase in pension age in his budget speech in assembly on March 11.
According to the finance department assessment, the state government could profit Rs 4,000 crore annually by increasing pension age.
However, it’s not going to be easy for the government to push through its decision. The opposition expressed by representatives of youth organisations at the meeting convened by the finance minister clearly indicated that the government might face backlash from the youth who have been demanding more job opportunities in the state.
In another significant development, the Gulati Institute of Finance and Taxation (GIFT) in its report submitted last week, suggested the finance department to either increase or restructure all taxes pertaining to fuel, liquor, registration and motor vehicles which are within its purview. The finance department is also contemplating an increase in the price of lottery tickets barring bumper lottery, from existing Rs 40 to Rs 50.
Besides, the government is also planning to restructure the taxes levied by local bodies. There are indications that these proposals might come as budget announcements.
3.60 lakh employees to benefit
The state currently has 5.25 lakh government staff. Of these 1.6 lakh come under a participatory pension scheme whose retirement age is 60 years. So the remaining 3.6 lakh employees stand to benefit should the government decide to increase the pension age to 57.
