CHENNAI: Chief Minister MK Stalin on Sunday accused the BJP-led Union government of deliberately engineering a financial squeeze on Tamil Nadu, even as he strongly defended the rollout of the Tamil Nadu Assured Pension Scheme (TAPS), calling it a historic and morally driven commitment to government employees and teachers.
Addressing a thanksgiving conference organised by the JACTO–GEO at YMCA grounds in Nandanam here, Stalin said the State's finances were under sustained pressure due to a steady erosion of fiscal autonomy.
"Every year, our rightful share of tax devolution is being cut. Funds for Union government schemes are reduced and, even then, not released on time. GST changes have continuously diminished the State's tax revenues," he said.
"In this situation, we still have to deliver welfare schemes across all sectors. Income is falling, expenditure is rising, this is our reality," the Chief Minister said, quoting former Chief Minister C N Annadurai: "The box is there, the lock is there, the key is there, but the box is empty." He alleged that artificial financial pressure was imposed on the State and asserted that his government had successfully navigated both political and administrative challenges to protect employees' interests.
Stalin recalled that the demand for the old pension system had been pending for 22 years and said the right was taken away during the AIADMK regime. "The struggles you waged then were not ordinary. A heartless government reduced hardworking employees to tears. This, however, is a compassionate DMK government that embraces everyone," he said.
Explaining the evolution of TAPS, Stalin said a high-level committee headed by Additional Chief Secretary K Gagandeep Singh Bedi was constituted to examine the issue, followed by sustained consultations led by Ministers EV Velu, Thangam Thennarasu and Anbil Mahesh Poyyamozhi. The scheme, he said, balances employee welfare with long-term fiscal responsibility.
Under TAPS, State government employees will receive 50% of their last drawn salary as assured pension, with employees contributing 10% and the Tamil Nadu government bearing the entire additional financial burden.
DA will be revised every six months in line with serving employees, family pension fixed at 60%, and gratuity capped at Rs 25 lakh. Minimum pension is assured even for those retiring without completing qualifying service, while special pension relief will be extended to those who retired without a pension during the transition period.
Stalin said implementing TAPS would require an additional infusion of Rs 13,000 crore into the pension fund and an annual State contribution of about Rs 11,000 crore, rising each year. "Despite the severe fiscal constraints we face, I assure you that the Tamil Nadu government will bear the full cost to safeguard the welfare of employees and teachers," he said.
Reaffirming his government's commitment, the Chief Minister said: "What we promise, we deliver. In Dravidian Model 2.0, your demands, dreams and expectations will continue to be fulfilled."
Ministers EV Velu, Ma Subramanian and Anbil Mahesh were also present at the event.