Assessing the Macroeconomics Implications of The Unified Pension Scheme in India: An Analysis of The Effects on Fiscal Sustainability

The fiscal impact of pension schemes has long been a subject of concern for policymakers dueto their significant role in shaping public expenditure and economic stability, with the debateon welfare and efficiency continuing in this aspect as well. In this direction, the newlyintroduced Unified Pension Scheme (UPS) was expected to give perfect solutions to theproblems rather than to escalate the problems further. In light of the present circumstances,the study presents an opportunity to evaluate the interplay between fiscal sustainability andindividual financial behaviour through the empirical methods of debt sustainability analysisand crosssectional regression.The findings are intended to advise policymakers for balancing fiscal prudence with broadersocioeconomic goals of pensionary reforms. Concepts of behavioural economics andcomparative analysis comprising the case studies of the US, Sweden and Argentina are alsomade to give valuable insights and recommendations for successful pensionary reform

Recommended Citation

Pranay Agarwal (2025) "Assessing the Macroeconomics Implications of The Unified Pension Scheme in India: An Analysis of The Effects on Fiscal Sustainability", GNLU Journal of Law And Economics : Volume VIII 2025, Issue I
Available at: https://gnlu.ac.in/GJLE/Publications/Assessing the Macroeconomics Implications of The Unified Pension Scheme in India: An Analysis of The Effects on Fiscal Sustainability