Uttarakhand Approves Unified Pension Scheme & Excise Policy 2025

On March 3, 2025, the Uttarakhand Cabinet, under the leadership of Chief Minister Pushkar Singh Dhami, approved two significant policy initiatives: the implementation of the Unified Pension Scheme (UPS) and the introduction of the New Excise Policy 2025.

Unified Pension Scheme (UPS): A Shift Towards Assured Retirement Benefits

The Unified Pension Scheme represents a pivotal shift in the state’s approach to employee retirement benefits. This scheme, introduced by the Central Government, offers an alternative to the existing National Pension System (NPS). And aiming to provide assured payouts to government employees post-retirement.

Key Features of the Unified Pension Scheme:

• Assured Pension: Employees who complete 25 years of service receive a pension equal to 50% of their average basic pay from the last 12 months before retirement. Those with 10 to 25 years of service get a proportionate pension.
• Family Pension: If an employee passes away, their family receives 60% of the entitled pension amount.
• Minimum Pension Guarantee: Employees who retire after at least 10 years of service receive a minimum pension of ₹10,000 per month, ensuring financial security.
• Inflation Indexation: Pension amounts adjust periodically to counter inflation, preserving retirees’ purchasing power.

The UPS is slated to become operational in Uttarakhand from April 1, 2025, providing employees the option to choose between the NPS and the new scheme. This flexibility allows individuals to select a retirement plan that best aligns with their financial goals and expectations.

New Excise Policy 2025: Balancing Regulation with Revenue Generation

In tandem with the pension reforms, the Uttarakhand Cabinet approved the New Excise Policy 2025. And reflecting a comprehensive approach to liquor regulation in the state. This policy seeks to balance societal concerns with the state’s revenue objectives.

Salient Features of the New Excise Policy:

• Proximity Restrictions: Recognizing the cultural and religious sensitivities of the populace. And the policy mandates the closure of liquor outlets situated near religious sites. This move underscores the government’s commitment to respecting public sentiments and preserving the sanctity of such places.
• Enhanced Regulatory Oversight: To curb the unregulated sale of liquor, the policy introduces stricter controls. Notably, sub-shops and the metro liquor sales system have been abolished, aiming to streamline liquor distribution and prevent unauthorized sales.
• Enforcement of Maximum Retail Price (MRP): The policy emphasizes consumer protection by enforcing strict adherence to MRP on all liquor sales, including those in departmental stores. Any violation, such as overcharging, can lead to the cancellation of the outlet’s license, serving as a deterrent against malpractice.

Anticipated Outcomes:

The New Excise Policy 2025 is expected to achieve a dual objective: safeguarding public interest by regulating liquor sales and enhancing state revenue through structured and lawful distribution channels. By addressing public sensitivities and enforcing stringent regulations, the policy aims to create a more accountable and transparent excise system.

Conclusion:

The Uttarakhand Cabinet’s approval of the Unified Pension Scheme and the New Excise Policy 2025 signifies a proactive approach to governance. And focusing on employee welfare and societal well-being. The Unified Pension Scheme promises financial stability for government employees, potentially leading to a more motivated workforce. Concurrently, the New Excise Policy endeavors to regulate liquor sales effectively, respecting cultural values while aiming for economic growth.

As these policies come into effect, their successful implementation will depend on meticulous planning, robust enforcement mechanisms. And continuous stakeholder engagement. The state’s commitment to these reforms reflects a broader vision of sustainable development, balancing economic objectives with social responsibilities.

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