Section Overview
TAPS (Assured Pension scheme notified 3.1.2026) to be fully implemented. 8th Pay Commission recommendations to be extended to state employees. Health insurance raised from ₹5L to ₹10L. 1.5 lakh vacancies to be filled.
Summary Ratings
| Fiscal Pressure | Economic Benefit | Social Benefit | Implementation Risk |
| HIGH | LOW | MEDIUM | LOW |
Proposal-by-Proposal Analysis
The table below provides fiscal cost estimates and impact ratings for the principal proposals in this section.
| Key Proposal | Fiscal Cost Estimate | Economic Benefit | Social Benefit |
| TAPS implementation (50% last salary as pension) | TAPS already notified. Long-term actuarial liability ~₹15,000–25,000 cr over 20–30 years (NIPFP 2024 state pension liability study). Annual impact in near term: ~₹1,500–2,000 cr additional over NPS payouts. | HIGH | MEDIUM |
| 8th Pay Commission recommendations to state employees | National estimate: ~25–30% salary increase. TN’s state salary bill ~₹75,000 cr/yr. 25% increase = ₹18,750 cr/yr additional – phased over 2 years. This is the single largest potential fiscal event in the manifesto. | HIGH | MEDIUM |
| Health insurance: ₹5L → ₹10L for state employees/retirees | Additional actuarial premium: ₹400–600 cr/yr. | MEDIUM | HIGH |
| 1.5 lakh vacancies filled | Net additional salary cost (avg ₹45,000/month): ₹8,100 cr/yr once fully recruited. | HIGH | HIGH |
| Annual full medical check-up from age 50 for all employees | ₹3,000/check-up × 7 lakh employees × 50% in 50+ age bracket = ₹105 cr/yr. | LOW | HIGH |
Analytical Notes
⚑ Analytical Note: The 8th Pay Commission implementation is the largest single-year fiscal risk in the entire manifesto – it could add ₹18,000–25,000 crore to the annual salary/pension bill. However, it is not exclusively a state decision: it depends on the Union Government finalising and implementing the 8th Pay Commission (notified, currently in deliberation). The TAPS scheme is a politically popular but fiscally risky long-term commitment – its 30-year actuarial liability significantly exceeds the NPS equivalent. The NIPFP has flagged similar guaranteed-return pension schemes as the primary driver of fiscal stress in states like Rajasthan and Himachal Pradesh.
