News > Shifting to old pension scheme may lead to liability add-up in future: Raghuram Rajan

Shifting to old pension scheme may lead to liability add-up in future: Raghuram Rajan

As several state governments have shown their intention of shifting to the old pension scheme, former RBI Governor Raghuram Rajan said that states doing so would end up curbing current expenditure but may build liabilities for the future. He further said that defined benefit schemes are easier for governments to adopt as liabilities are not being recognised. State governments like Rajasthan, Chhattisgarh, Punjab and Himachal Pradesh have indicated that they will shift to the old pension.