Indian Army Jobs / 'Agneepath' will reduce pension expenditure by 75% after two decades

Different types of reactions are coming on the new scheme 'Agneepath' started for recruitment in the three services. But if the implementation of this scheme is successful, then after at least two decades, the expenditure on pension of ex-servicemen can come down by up to 75 percent. However, the outcome of the plan will remain under watch in the years to come

Vikrant Shekhawat : Jun 15, 2022, 08:04 AM
Delhi: Different types of reactions are coming on the new scheme 'Agneepath' started for recruitment in the three services. But if the implementation of this scheme is successful, then after at least two decades, the expenditure on pension of ex-servicemen can come down by up to 75 percent. However, the outcome of the plan will remain under watch in the years to come, amid the continuing threat from China and Pakistan on the dual front.

There are estimated to be around 24-25 lakh ex-servicemen in the country. Every year 60-70 thousand soldiers retire from the three services. Usually, at the age of 38-42 years, most of the jawans retire after which their dependence remains on pension. A major part of the allocation to the defense sector is spent on the pension of ex-servicemen.

For example, out of the total defense budget of Rs 5.25 lakh crore this year, Rs 1.19 lakh crore has been allocated on ex-servicemen's pension. Earlier this amount had reached 1.33 lakh crore. This amount is almost as much as is currently spent on the salaries and allowances of the three services. Therefore, it is a challenge for the government to stop the increasing budget of pension. In this sense, it can be called a far-reaching decision.

old system

The old pension system is still applicable in the army, in which the pension is completely paid by the government, whereas after 2004, the new pension scheme has been implemented for the central personnel. In the new pension scheme, the amount is deducted from the salary of the employees and only then pension is received. However, some critics say that it was better to bring the forces under the ambit of the new pension scheme than to bring this scheme.

Rawat was in favor of reducing pension

Former CDS General Bipin Rawat wanted 35-40 percent of the jawans to retire at the age of 55 to reduce the pension expenditure. The jawans who are 60-65% younger will still be available for the war front. It is now clear that that formula has now been rejected.

the numbers will start decreasing

Only a maximum of 25 percent of the soldiers recruited under the Agneepath scheme will be recruited as regular soldiers. If this process continues continuously, the number of pensioners will start decreasing. If this cycle continues, then after 18-20 years, a time will come when the number of soldiers eligible for pension in the armies will be reduced to only 25 percent and 75 percent of the soldiers will be under the Agneepath scheme. Because the government has not yet made any announcement whether a fixed ratio of Agniveer and regular soldiers will be maintained or not. It may be that later the maximum percentage of firefighters in the armies may be fixed.

Defense experts believe that the new scheme will increase the participation of youth in the forces. With the fixed tenure of four years, more number of youth will get an opportunity to join the army.