New Delhi: Finance Minister Yashwant Sinha on March 13 defended lifting of exemptions and 0.5 per cent cut in small savings rate in the Budget, and said the government was considering a savings scheme, which would benefit the salaried class in both the public and private sector.

"We are considering a savings scheme for the entire salaried class both in the government and the private sector," Sinha said at the ASSOCHAM post Budget session in New Delhi.

The move can be seen as part of pension reforms, which was spelt out by Sinha in the Budget. The roadmap for the pension sector would be formally announced by June 2002.

Presently, the pension cover is provided to the government employees only.

However, Insurance Regulatory and Development Authority (IRDA) and insurance industry had demanded reforms in the pension sector, especially in the unorganised and services sector to boost long-term savings.

The Industry has demanded a three-pillar pension structure -- the first pillar for covering government and PSU (Public Sector Undertakings) employees, the second pillar for private employers and employees and the third pillar would be a voluntary scheme for everyone.

Industry had also demanded that tax concession on Rs 10,000 under Section 88 CCC of Income Tax Act be enhanced to Rs 20,000 per annum.

Sinha declined to divulge details of the "saving scheme" that government was firming up.

He, however, defended his Budget measures saying, "while removing tax concessions, we have been careful on small wage earners."

PTI