YS Jagan Mohan Reddy repeatedly assured us that he would cancel the controversial Contributory Pension Scheme (CPS) of the employees in just one week of coming to power.
More than three years into power, nothing of such sort has happened.
It looks like the Chief Minister had taken a flipflop on it as the state government is going to take a loan on the government and employees’ contribution to CPS.
The state government is taking a loan of 4,203 Crores with this and the Central Government had also given approval for it.
The Union Government itself revealed this in Rajya Sabha.
Since the loan will be raised, there is no chance of canceling the CPS scheme in the future as well.
1,92,000 employees of Andhra Pradesh contribute 10% of their basic salaries and the state government will contribute another 10%.
A loan will be raised on this amount and this is the first time in history such a loan is raised.