Govt Considering Stopping Pensions For Widows
The government is mulling over abolishing pensions for widows and heirs of deceased pensioners and a proposal in this regard will soon be presented for approval to the federal cabinet. The move is aimed at reducing the fiscal deficit.
Express Tribune reported that the government is thinking of taking this step to reduce fiscal deficit and liabilities for the next year’s budget.
The proposal will recommend the abolishment of pensions to widowers and other family members of deceased pensioners in Khyber Pakhtunkhwa.
Finance Minister Tamur Saleem when questioned about the abolishment of pensions said that the reduction will increase the development budget. “If we want to increase the volume of the development budget then we have to reduce the huge sum spent on pension.”
He further added that the retirement age in the province has already been increased by three years in order for more savings. “If we save money then it will be spent on other welfare project beneficial for the general public.”
Saleem also claimed that the government might stop paying pensions after a certain age has been reached. He said the age bracket will most likely be 70 or 75 years.
Currently a total of Rs86 billion is allotted to pensions in the budget. Saleem argued that every year the the allotted amount for pensions in the budget increases and in coming years might rise up to 104 billion – which currently is the amount allotted for development.