Demand for introducing a contributory pension scheme for Non-Resident Keralites (NoRKs) came up for discussion at the Loka Kerala Sabha (LKS) on Saturday morning.
Participants at a session on finance, Kerala Infrastructure Investment Fund Board (KIIFB)-funded infrastructure projects and Pravasi Chitty scheme enthusiastically responded to a proposal on contributory pension scheme that was tossed up by Finance Secretary Manoj Joshi in the course of the discussions. Mr. Joshi said the pension scheme in vogue has its own limitations and a new scheme could be evolved by investing the NoRKs contributions in equity, but he cautioned about the market risks involved in the scheme.
The delegates received the proposal with enthusiasm, but wanted the government to work out a model scheme which could form the basis for discussions on it. This was approved by Finance Minister T.M. Thomas Isaac, former Finance Minister K.M. Mani and former Chief Secretary K.M. Abraham. The Pravasi Chitty scheme also received good response from the delegates. Doubts about the security prescribed for drawing the chitty were cleared by Mr. Abraham.
Mr. Abraham explained the rigorous conditions laid down for efficient execution of KIIFB-funded projects and to safeguard the interests of depositors. The entire operation was being overseen by a panel of trustees with impeccable integrity. The government had devised a transparent mechanism spending the funds and appraising the quality of the projects.
Dr. Isaac said the budget for 2018-19 would have fiscal consolidation as its key objective. Spending would be curbed without any reduction in welfare pensions and the government’s other social sector commitments. The thrust would be on bringing down fiscal deficit to 3% of the Gross Domestic Product.
Funding of infrastructure projects through KIIFB had been mooted because the government could not wait till the entire deficit was wiped off to begin its developmental push. The government was also factoring in issues such as return of migrant Keralites in large numbers and the resultant fall in foreign remittances in its long-term planning.
Referring to the growing fiscal deficit, Mr. Mani said this was unavoidable as expenditure could not be curtailed.
