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Coronavirus outbreak: 'No proposal to cut govt pension by 20%, says Nirmala Sitharaman

The salaries and pensions will not see any negative impact amid the crisis, the finance ministry clarified on Twitter

twitter-logoBusinessToday.In | April 20, 2020 | Updated 18:41 IST
Coronavirus outbreak: 'No proposal to cut govt pension by 20%,’ says Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman

The government on Sunday denied claims that it plans to cut pensions by 20 per cent to save funds amid the ongoing coronavirus lockdown. The salaries and pensions will not see any negative impact amid the crisis, the finance ministry clarified on Twitter.  "It is being reported that a 20% cut in Central Government Pensions is being planned. This news is false. There will be no cut in pension disbursements. It is clarified that salaries and pensions will not be affected by government cash management instructions," the finance ministry tweeted. The clarification comes after a few reports claimed that the government is planning to reduce pensions by 20 per cent.


"As clarified earlier, it is being reiterated that there is no such proposal for reduction of pension and no action is contemplated by the government in this respect. Instead, the government is committed for the welfare and well being of the pensioners," the Department of Pensions and Pensioners' Welfare (DoPPW) also said in a communique issued later. In total, there are over  65 lakh central government pensioners.

Earlier on April 9, PIB Fact Check also rubbished the claims. "Media reports & rumours circulating on social media claiming that the Govt may reduce employees' pension by 30% & terminate it for those above the age of 80, in the context of #COVID?19, is FAKE. #PIBFactCheck: This claim is #Fake. Government is doing no such thing!"

Meanwhile, the government recently announced that the President, Vice President, Prime Minister and all Members of Parliament will take a salary cut of 30 per cent amid coronavirus crisis. All these funds will be transferred to the Consolidated Fund of India and the salary cut will be applicable for one year. However, pensions and allowances of MPs will remain unaffected, the government said.

Also Read: Coronavirus India Live Updates: Home Ministry prohibits migrant labourers from moving outside states, UTs

Also Read: Coronavirus: Supply chain massively disrupted by lockdown, says Niti Aayog CEO Amitabh Kant

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