India spends more than 3% of GDP on govt pensions, states' burden growing

India is currently spending over 3% of its Gross Domestic Product (GDP) on government pensions, reflecting a growing fiscal burden on the states. This significant expenditure on pensions is placing increasing pressure on state budgets, which are already strained by various financial commitments. The rising pension costs are attributed to factors such as demographic changes, increased longevity, and the expansion of pension schemes. This situation calls for a reassessment of pension policies and potentially reforming pension systems to ensure sustainability and alleviate the fiscal strain on state finances.