Bihar, a state in eastern India, has recently announced the introduction of a universal old-age pension scheme. This innovative initiative aims to offer a measure of financial security to every resident of the state who is 60 years old and above. In a break from tradition, this monthly pension will be provided regardless of factors like financial standing, family status, or caste. Whether male or female, every eligible person will receive their pension directly into their bank account. The central aim of this initiative is to bring all elderly residents in Bihar under the umbrella of a social security plan.
Details of the Scheme
The pension scheme sets out different monthly payments based on age. For those who are 80 years old and above, both men and women will receive Rs 500 per month. Meanwhile, people who fall within the 60-79 years age bracket will receive Rs 400 per month. The eligibility for these payments is straightforward; those who are not getting any other pension either from the state or the central government, will be entitled to get the old-age pension under this new scheme.
A Comparison with Other States
Bihar’s approach to supporting older residents contrasts significantly with the measures seen in many other Indian states. Typically, old-age pensions are provided exclusively to members of either Below Poverty Line (BPL) families, Scheduled Castes/Scheduled Tribes (SC/ST), widows, or disabled persons. However, Bihar’s universal old-age pension scheme is more inclusive, extending its benefits to every male and female resident over 60 years.
Cost and Implementation
| Additional Expenditure by State Government | Effective Date of Implementation |
|---|---|
| Rs 1,800 crore per annum | 1st April, 2019 |
Financial Implications of the Scheme
Bihar’s state government would incur additional costs to the tune of Rs 1,800 crore per annum due to this scheme. The new scheme, aiming at safeguarding the financial well-being of the elderly, has been implemented effectively from 1st April, 2019.
Wrapping up
With the launch of this universal old-age pension scheme, Bihar has taken a significant step forward in creating an inclusive and comprehensive social security plan. It puts an emphasis on the financial viability and independence of its senior citizens, ensuring they have steady support in their twilight years. This is not only a milestone for Bihar but also sets an inspiring example for other states in India.
