Finance Minister Nirmala Sitharaman engaged in a heated exchange with former Union minister Jairam Ramesh over the efficacy of the Atal Pension Yojana. The FM took to X (Formerly Twitter) to rebut Ramesh's criticisms, accusing him of ignorance and malicious intent.
The FM began by addressing Ramesh's comments on the design of the APY, particularly its automatic premium payment feature. Describing it as a beneficial aspect of the scheme, the FM asserted that it encourages individuals to make the right decisions regarding their retirement savings.
Drawing from the principles of choice architecture advocated by Nobel Laureate Richard Thaler and former Obama administration official Cass Sunstein, the FM defended the scheme's structure.
The FM refuted Ramesh's characterisation of the APY as a "fixed income pension," emphasising that the scheme guarantees a minimum return of 8%, irrespective of prevailing market conditions.
"Jairam Ramesh calls it a fixed income pension. He has not bothered to check facts. The minimum return under the APY is guaranteed by the GoI to be at least 8%, regardless of prevailing interest rates and returns."
The FM highlighted the government's commitment to subsidise any shortfalls in returns, thereby ensuring attractive benefits for subscribers.
"This is an attractive guaranteed minimum return. GoI pays a subsidy to PFRDA to make up for any shortfall in actual returns. If higher investment returns are received on the contributions of subscribers of APY, higher pension would be paid to the subscribers: In fact, currently the returns are more than 8%," she said.
Responding to Ramesh's accusation of coercion and hoodwinking in enrolling individuals into the scheme, the FM launched a scathing counterattack, accusing the Congress party of employing similar tactics for political gain.
Additionally, the FM dismissed Ramesh's concerns regarding the predominance of lower-income subscribers, arguing that it reflects the intended targeting of the scheme towards the economically disadvantaged.
Concluding the Twitter tirade, the FM accused Ramesh and the Congress party of harbouring an elitist mindset that neglects the welfare of the poor. Alleging that the Opposition prefers to keep the marginalised populace dependent on government handouts, the FM defended the APY as a crucial initiative aimed at providing financial security to the underprivileged.
"The elitist mindset of the dynasty and its minions who are constantly thinking of people in the higher echelons of society, perhaps, blinds them to this obvious truth. The @INCIndia prefers that poor should not have pensions so that they are forced to rely on government hand-outs which keeps them dependant on dynasty politicians," she stated.
(Edited by : Shoma Bhattacharjee)
