The Ministry of Rural Development (MoRD) has recently come under scrutiny for diverting funds from the National Social Assistance Programme (NSAP) to publicize other schemes. The Comptroller and Auditor General of India (CAG) conducted a performance audit of NSAP from 2017-18 to 2020-21 and highlighted these financial irregularities.
What is National Social Assistance Programme (NSAP)?
Launched in 1995 as a Centrally Sponsored Scheme of the MoRD, the NSAP aims to provide financial assistance to Below Poverty Line (BPL) individuals who are elderly, widows, persons with disabilities, and bereaved families. This assistance is provided in the form of social pensions, aligning with Article 41 of the Indian Constitution, which mandates public support for citizens in situations of unemployment, old age, sickness, and disablement.
Components of NSAP
Initially comprising three schemes—National Old Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS), and National Maternity Benefit Scheme (NMBS)—NSAP has evolved over the years. The National Maternity Benefit Scheme was transferred to the Ministry of Health and Family Welfare in 2001. Presently, NSAP consists of five schemes:
- Indira Gandhi National Old Age Pension Scheme (IGNOAPS): This scheme provides a monthly pension of Rs 200 to individuals aged 60-79, while those aged 80 and above receive Rs 500 per month.
- Indira Gandhi National Widow Pension Scheme (IGNWPS): Eligible widows aged 40 and above receive a monthly pension of Rs 300, which increases to Rs 500 after attaining 80 years of age.
- Indira Gandhi National Disability Pension Scheme (IGNDPS): Individuals aged 18 and above with a disability level of 80% (including dwarfs) receives a monthly pension of Rs 300, increasing to Rs 500 after turning 80.
- National Family Benefit Scheme (NFBS): This scheme provides a lump sum assistance of Rs 20,000 to bereaved households in the event of the primary breadwinner’s death.
- Annapurna Scheme: Catering to food security needs, this scheme offers 10 kgs of food grains (wheat or rice) per month to eligible elderly persons not covered by IGNOAPS.
CAG’s Audit and Findings
The CAG’s performance audit of NSAP from 2017-18 to 2020-21 raised several concerns, shedding light on diversions of funds and other financial irregularities. According to the report, around 4.65 crore beneficiaries’ availed pensions and family benefits annually during this period. The central government released an average of Rs 8,608 crore per annum, supplemented by an average annual allocation of Rs 27,393 crore from states and Union Territories.
Diversions and Misappropriations
The audit revealed that the MoRD diverted funds from NSAP for publicizing other schemes. In 2017, the ministry embarked on an Information, Education, and Communication (IEC) campaign through hoardings in states and Union Territories. While the ministry claimed that funds for this campaign were sourced from the National Rural Employment Guarantee Scheme, the audit found that funds were actually diverted from NSAP. This diversion amounted to Rs 2.83 crore, hindering planned IEC activities under NSAP.
Additionally, the CAG’s report highlighted that Rs 57.45 crore was diverted across six states and Union Territories, including Rajasthan, Chhattisgarh, Jammu & Kashmir, Odisha, Goa, and Bihar. For instance, in Rajasthan, NFBS funds were redirected to pay insurance premiums for BPL and Aastha Card holders under the Pannadhay Jeevan Amrit Yojana (Aam Aadmi Beema Yojana).
Way Forward
In response to the audit findings, the MoRD acknowledged the diversion and claimed to have taken up the matter with the IEC division of the department. However, such diversions raise questions about transparency and accountability in fund allocation and utilization. The government needs to ensure that funds designated for specific schemes are utilized appropriately and that deviations are minimized.
