Despite reduced funding from the central government, the Tamil Nadu government is opening the taps for its employees: CM Stalin

Chennai: Chief Minister MK Stalin on Sunday accused the BJP-led central government of deliberately putting financial pressure on Tamil Nadu, while strongly defending the implementation of the Tamil Nadu Assured Pension Scheme (TAPS), calling it a historic and moral commitment to government employees and teachers. Addressing a thanksgiving conference organised by JACTO-GEO at the YMCA grounds in Nandanam here, Stalin said the state’s finances are under constant pressure due to the continued erosion of financial autonomy. “Every year, our rightful share in tax sharing is being cut. Funds for central government schemes have been reduced and, even then, are not released on time. Changes in GST have consistently reduced the state’s tax revenue,” he said. The Chief Minister, quoting former Chief Minister C.N. Annadurai, said, “In this situation, we still have to implement welfare schemes in all sectors. Income is falling, expenses are rising; this is our reality: ‘There is a box, there is a lock, there is a key, but the box is empty.'” He alleged that artificial financial pressure had been placed on the state and stressed that his government had successfully faced both political and administrative challenges to protect the interests of employees. Stalin recalled that the demand for the old pension system had been pending for 22 years and said that this right was taken away during the AIADMK rule. “The struggles you faced then were not normal. A ruthless government made hardworking employees cry. However, this is a compassionate DMK government that embraces everyone,” he said. Explaining the development of TAPS, Stalin said that a high-level committee headed by Additional Chief Secretary K. Gagandeep Singh Bedi was formed to examine the issue, followed by continuous consultations led by ministers EV Velu, Thangam Thennarasu, and Anbil Mahesh Poyyamozhi. He said that the scheme strikes a balance between employee welfare and long-term financial responsibility.

Under TAPS, state government employees will receive a guaranteed pension of 50% of their last salary, with employees contributing 10% and the Tamil Nadu government bearing the entire additional financial burden. Dearness Allowance (DA) will be revised every six months for serving employees, family pension is fixed at 60%, and gratuity is limited to ₹2.5 million. Those retiring without completing qualifying service will also be guaranteed a minimum pension, while those retiring without pension during the transition period will be given special pension relief. Stalin said that implementing TAPS would require a contribution of ₹13,000 crore to the pension fund and an annual state government contribution of approximately ₹11,000 crore, which would increase every year. He said, “Despite the serious financial constraints we face, I assure you that the Tamil Nadu government will bear the entire cost to protect the welfare of employees and teachers.” Reiterating his government’s commitment, the Chief Minister said: “We deliver on our promises. In Dravidian Model 2.0, your demands, dreams, and hopes will continue to be fulfilled.” Ministers EV Velu, MA Subramanian, and Anbil Mahesh were also present at the event.