Jammu, Mar 6: The pension expenditure of the Jammu and Kashmir government is projected to double over a decade, rising sharply between 2020 and 2030 as nearly 2.48 lakh retired employees continue to receive pension benefits, officials said.
The administration has also ruled out any proposal to revive the Old Pension Scheme (OPS), stating that the move would be fiscally unsustainable and could pose serious risks to the region’s financial stability.
According to official data, the government paid Rs 5,829 crore as pension in 2020-21 and the figure is projected to increase to Rs 11,798 crore by 2030-31. The details were shared in a government reply to a cut motion in the Jammu and Kashmir Assembly recently.
The pension outgo has steadily increased over the past five years, reaching Rs 6,668 crore in 2021-22, Rs 7,463 crore in 2022-23, Rs 8,364 crore in 2023-24, Rs 9,350 crore in 2024-25 and Rs 9,127 crore in 2025-26.
Officials said the pension liability is expected to continue rising in the coming years depending on the number of employees retiring, with the outgo estimated to touch Rs 11,798 crore by 2030-31.
They added that pension commitments may continue to expand until the early 2040s, after which the burden is expected to stabilise as a majority of employees covered under the Old Pension Scheme retire.
The officials said the New Pension Scheme (NPS), introduced in 2010, offers a more sustainable framework with proper fund management, unlike the OPS which does not have a dedicated pension fund.
They noted that Jammu and Kashmir, being largely an expenditure-driven region with modest revenue receipts and limited investment avenues, has witnessed disproportionate growth in pension liabilities over the years.
Earlier too, pension expenditure had nearly doubled from Rs 731 crore in 2004-05 to Rs 1,495 crore in 2009-10, they said.
Following a Cabinet decision in 2009, the government shifted from the Defined Benefit Pension Scheme — OPS — to the Defined Contribution Pension Scheme — NPS — for all employees appointed on or after January 1, 2010 through amendments in the J&K Civil Service Regulations.
Officials said the government continues to honour its commitment to pensioners under the OPS while ensuring that development spending and allocations are not adversely affected. Once pension expenditure stabilises around 2040, proportionately more funds are expected to be available for development activities, they added. (Agencies)
