In a major relief to the exchequer of Uttarakhand, the Uttar Pradesh Government has decided to transfer a sum of Rs 2337.89 crore to Uttarakhand regarding pension liabilities of the employees. The issue had been pending for many years as the UP Government was dithering over paying the pension benefits after 2011. This information was shared by Uttar Pradesh CM Yogi Adityanath on his Twitter handle in which he said that UP government has made a provision of Rs 2337.89 crore in the supplementary budget for clearing the pension liabilities to Uttarakhand.
The additional secretary, Finance, government of Uttarakhand, Arunendra Singh Chauhan said that the amount would be transferred to Uttarakhand on Government to Government ( G2G) level. He said that UP owes an amount which is in excess of Rs 3000 crore to Uttarakhand as pension liabilities. The issue of pension liabilities is one of the many disputes between the two states on sharing of assets and liabilities.
After many rounds of talks, the UP Government agreed to pay the pension liabilities of its employees in 2011 when a sum of Rs 2700 crore was paid. However, they started to dither on the issue of clearing the pension liabilities thereafter. But now, the intervention of the Union Government has made the UP Government to provide for the pension liability payment in its supplementary budget.
The Issue
After division of Uttar Pradesh and creation of Uttarakhand in 2000, there were many pensioners from UP who became residents of the newly created State.
As per the State Reorganisation Act, the UP Government is bound to pay the pension liabilities involving its employees.
According to the mechanism reached, the Uttarakhand Government continued to pay pension to employees of UP and claimed the amount from UP. The UP Government paid a sum of Rs 2700 crore till March 31, 2011 but thereafter it dithered on clearing the pension obligation of its employees residing in Uttarakhand. After round of talks remained unproductive, the Uttarakhand government took the issue up with the Centre and subsequently the Centre nudged the UP government to clear the pending dues