Agnipath scheme: A burgeoning pension bill is the govt's big headache

Pensions accounted for a third of the revenue expenditure on defence

Since the government announced its Agnipath scheme — a four-year contractual employment for youth in the armed forces — protests have erupted in parts of the country. Protesters feel cheated as the scheme would ensure permanent employment for only a quarter of those completing the four-year tenure.

The government argues that Agnipath will make the armed forces younger and leaner, as contractual employment saves money. In 2022-23, India will spend Rs 5.3 trillion on defence: 22.8 per cent of this would be for pension payments — down from 26.4 per cent spent on pensions in 2020-21. Pension payments cost the armed