TN Fin Min calls pensions as ‘freebies’ after going back on poll promise, leaves pro-DMK teachers union enraged

The Dravida Munnetra Kazgham (DMK) had promised in its 2021 Assembly elections manifesto that it would revert back to the old pension scheme once it comes to power.

However, Tamil Nadu Finance Minister PTR Palanivel Thiagarajan told the Assembly last week that a decision could not be taken on the implementation of the old pension scheme as the state’s financial situation was dire adding that the government will go bankrupt if it gives everything away for free to everyone.

Not just that, he has now equated pensions with ‘freebies’ which has enraged government school teachers and staff.

In response to this, the Joint Action Council of Teachers Organisation – Government Employees Organisation (JACTO-GEO) has issued a statement condemning Finance Minister’s comments.

The statement said that it was the expectation of government workers who were fully involved in providing relief to people during the COVID-19 pandemic, that the Tamil Nadu government would announce the 11% increase in Dearness Allowance (DA) in the recent budget. The announcement that the hike in DA will be given from 1-4-2022 to government employees and teachers has caused great disappointment and shock, the statement said.

They also raised questions over mismatch in figures on government expenditure on salaries mentioned by Palanivel Thiagarajan in his recent interview to a private Tamil channel.

The minister had said in his budget speech that the government was incurring about 19 paise for salaries and 8 paise on pensions for every rupee income. However, during the interview with the channel, the Palanivel Thiagarajan said that government was spending 65 paise on every rupee on salaries and pensions.

The statement said that Finance Minister Palanivel Thiagarajan not only spoke in a way despising teachers and civil servants but also spoke in a way that alienated the public. These comments from the MIT Sloan School of Management educated Finance Minister has caused great animosity among teachers and civil servants.

The In 2006-2007, under revenue expenditure, the salaries were 27.95 per cent and pension benefits stood at 14.32 per cent. It has reduced to 24.92 per cent and 10.50 per cent respectively in 2020-2021. Whereas in the same period, the expenditure on subsidies has shot up from 12.65 per cent to 19.43 per cent.

“Former Chief Minister Jayalalithaa said in 2002 that 94% of Tamil Nadu’s revenue was spent on salaries and pensions. In addition, he canceled various benefits for teachers and government employees and pledged pension benefits without cash. On that day, Karunanidhi, the Tamil Nadu opposition leader, not only statistically denied that 94% was being spent on pensions, but also said that the ruling government should not consider the salaries and pensions of its teachers and civil servants as a project cost of the state.”, the statement said.

“So, the government employees are in no way the reason for the state government’s financial burden,” the statement added.

The statement also reminded Palanivel Thiagarajan about the protests and agitations supported by MK Stalin who was back then the Leader of Opposition and also the promise it made in the 2021 Assembly elections manifesto. It also mentioned that JACTO-GEO had worked very hard to make DMK come to power and ensure Stalin comes as Chief Minister.

The JACTO-GEO further said that the Finance Minister has taken a stand against teachers-civil servants and has been tasked with fostering a sense of hostility and hatred among the people. It also threatened that this attitude would create a major rift in the DMK regime emphasizing that the body has maintained the long-standing goodwill between the government and teachers and civil servants.

“The JACTO-GEO has full confidence that the Tamil Nadu chief minister will deliver on all his promises.”, it said.

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