A team headed by finance secretary TV Somanathan, which is currently reviewing the NPS, is likely to present a detailed status report to the Finance Ministry by the end of this month, reported The Economic Times, citing sources.

The report further said that the financial panel is currently considering some tweaks and guarantees in the NPS, and the discussions are not in favour of any additional fiscal burdens or going back to the old pension scheme.

The Centre is likely to seek public consultation before taking any final calls, reported ET. It is likely that the report will focus on potential improvements in the NPS, taking into account the worries of some pensioners in comparison with the old pension scheme (OPS).

“The report will not be prescriptive and any changes, if at all required, will be weighed against the fiscal impact and it will be then put for the public consultation,” an official told ET.

Earlier, reports suggested that no hike income tax rebate will be announced in Union Budget 2024. Since this is an interim budget, no major announcement of changes in tax policies will be made.

Interim Budget 2024 on February 1

Finance Minister Nirmala Sitharaman will present the interim Union Budget 2024 on February 1 this year. The budget presented will be for vote-on-account, which means that no major tax announcements will me made.

The interim budget will only be announced for the first three months of the upcoming financial year in view of the 2024 Lok Sabha elections. The consolidated budget for 2024 will be announced after the results of the elections are declared.

The announcement regarding NPS comes as there is a sharp debate regarding the new pensions scheme in the country, just as Opposition ruled states like Rajasthan, Chhattisgarh and Himachal Pradesh decided to go back to the old pension scheme last year.