The annual recurring financial implication on account of implementation of OROP at the current rate will be approximately Rs. 7500 crore.
Although, the ex-servicemen had demanded the base date to kept at April 1, 2014, Government has decided to keep it at July 1, 2014. The arrears from July 1 to December 31 will be Rs 10,900 crore. Annual recurring financial implication on account of OROP implementation at pension scale of 2013 would cost a recurring amount of Rs 7,500 crore until the next revision.
|Centre to implement One Rank One Pension (OROP)|
The amount of pension will be revised once in five years. Ex-servicemen had strongly objected to the clause, calling it ‘Five rank, one pension’. Instead, they had demanded the revision of pension at every one or two years. However, incorporating the populist demand of the army veterans would further increase the burden on the economy.
The total increase in the Defence Budget for pensions is estimated to go up from Rs. 54,000 crore (BE 2015-16) to around Rs. 65,000 crore (proposed BE 2016-17), thereby increasing the Defence Pension outlay by about 20 percent.
The OROP scheme is set to benefit over 18 lakh ex-servicemen and war widows.
Source india.com & aninews