The aftermath of the 2024 Lok Sabha election is still reverberating in India’s political landscape, with the recent introduction of the Unified Pension Scheme (UPS) by the Union government. This move comes in the wake of a shift from Defined Benefit Schemes (DBS) to Defined Contribution Schemes (DCS) due to rising pension liabilities and declining interest rates globally. The UPS, a middle ground between OPS and NPS, aims to provide assured pensions to voters without overburdening the government’s fiscal balance. However, with some states already grappling with high debt levels and pension liabilities, the implementation of UPS is expected to…

Despite the Modi government’s promise to double farmer income, the reality remains far from ideal. The agricultural daily wages for men have only increased by 57.6 percent since the policy was announced in February 2016. Issues like farmer indebtedness and slow rural development continue to plague the sector. While the government and economists celebrate high GDP growth, rural areas are left wanting for a fair share of the economic progress. The trickle-down effect seems to be failing, with rising inflation and stagnant incomes putting a strain on rural households. The emphasis on capital expenditure over social welfare spending is a…

The RBI’s Record Surplus Transfer: A Game Changer in Financial Markets After a thorough review of the gains in income, the RBI has made a critical decision regarding the amount of contingency reserves to maintain for the financial year. The committee under Bimal Jalan recommended a reserve level between 5.5 and 6.5 per cent of the RBI’s balance sheet for 2023-2024. The RBI Board has decided to increase the reserve to 6.5 per cent, resulting in a transferred surplus of Rs 2.1 lakh-crore. This record dividend to the Union government indicates significant gains in asset valuations by the RBI. The…