Tamil Nadu's Assured Pension Scheme Hinges on Centre's Borrowing Permission

CHENNAI: Finance Minister N Marie Wilson on Monday informed the Assembly that the Tamil Nadu Assured Pension Scheme (TAPS) could be implemented only if the centre allowed the state additional borrowing to meet the cost of the scheme. Responding to AIADMK member S Ramachandran during the debate on the revised State Budget and Agriculture Budget for 2026-27, Wilson said a committee headed by IAS officer Gagandeep Singh Bedi had earlier recommended that TAPS could be implemented if the centre permitted additional borrowing. The minister said the committee had also recommended providing interim relief to employees who retired on or after January 1, 2026, until the scheme was implemented. “We have prepared an interim payout and will address the issue soon,” he said. Intervening in the debate, DMK whip E V Velu disputed the finance minister’s statement on the Rs 11,000 crore provision for it. Velu said TAPS was introduced as an assured pension scheme and that the previous DMK government had not merely recommended it but also allocated Rs 11,000 crore for its implementation. He said the AIADMK member (Ramachandran) pointed out that the government had removed the Rs 11,000 crore provision from the budget, and was now proposing to remove another Rs 3,000 crore.