The Aryavarth Express
Agency(New Delhi): Following the Congress party’s characterization of the Central Government’s Atal Pension Yojana (APY) as an inadequately structured program that misleads and pressures individuals into joining, Finance Minister Nirmala Sitharaman strongly rebuked these claims, accusing the party of deceiving the public through electoral politics. This exchange unfolded after Congress General Secretary Jairam Ramesh criticized the scheme as an emblem of the Modi administration’s approach to policy formulation, focusing on superficial achievements with minimal real-world benefits. His critique was propelled by a report suggesting a significant dropout rate from the scheme, attributed to non-consensual account openings, based on findings from the Indian Council of Social Science Research (ICSSR).
Ramesh utilized the social platform X to denounce the APY as a scheme that relies on manipulation and coercion for participation, labeling it as representative of the government’s policy development characterized by “headline management” without substantial benefits reaching the populace. Sitharaman retorted, accusing Ramesh of either malice or ignorance regarding the principles of effective pension scheme design. She highlighted the scheme’s automatic premium payment continuation feature unless a subscriber opts out, arguing this approach benefits subscribers by encouraging savings for retirement.
Further, Sitharaman referenced the book “Nudge” by Nobel laureate Richard Thaler and Cass Sunstein to underscore the significance of proper choice architecture in public scheme design. She juxtaposed the Congress party’s alleged deception in vote bank and minority appeasement politics with the APY’s objective of fostering subscriber’s financial security. Sitharaman also mentioned past instances of coercion under Congress governance, using these examples to underscore her point about the party’s elitist and dependency-inducing politics.
Ramesh countered Sitharaman’s defense by highlighting the coercive nature of APY enrollments, criticizing the finance minister’s reliance on academic theories to justify non-consensual subscriber enlistment. He argued that while nudges are crucial, they should not override consent, pointing to the practice of bank officers opening APY accounts to meet quotas without considering individuals’ ability to contribute.
The Atal Pension Yojana, aimed at India’s unorganized sector workers, promises a guaranteed minimum pension with government-backed returns. Sitharaman stressed the scheme’s design for the poor and lower-middle class’s benefit, ensuring a minimum return of eight percent. Conversely, Ramesh drew parallels with other government schemes accused of unauthorized fund deductions, questioning the ethicality of such practices and criticizing the APY’s future value projection.
