The Ministry of Rural Development in India has presented plans to enhance the monthly pensions for the elderly poor, disabled, and widows. The current ₹200 pension could potentially increase to ₹800 under the National Social Assistance Programme (NSAP). For those aged 80 and above, the proposal aims to increase the pension from ₹500 per month to ₹1,200. These modifications would require an additional annual cost of ₹18,000 crore on the Government.
Alongside this, a study has been initiated to examine the possibility of doubling the number of beneficiaries under the scheme. A possible merger of the Central and State pension schemes is also in discussion in an attempt to increase the coverage, an issue currently being deliberated with the State governments.
Criteria Shift in Pension Schemes and State-Level Adaptation
At present, the Below Poverty Line (BPL) criteria determines the number of beneficiaries under the NSAP. Nevertheless, several states including Rajasthan, Telangana, Bihar, and Uttar Pradesh have already transitioned the criteria for their pension schemes to the Socio Economic and Caste Census 2011 (SECC-2011) data.
NHRC Recommendations for Senior Citizens Welfare
In 2018, a panel formed by the National Human Rights Commission (NHRC) specializing in disability and elderly persons recommended measures to enhance the welfare of senior citizens. The recommendations include an increase in the Centre’s contribution to the pension scheme for the elderly from ₹200 to ₹2,000 per month, the implementation of a “time bank” scheme to care for elderly living alone, appointment of a nodal police officer at district level to resolve issues concerning senior citizens living alone, and using Corporate Social Responsibility (CSR) funds to build old age homes.
Understanding the Time Bank Scheme
The “time bank” scheme encourages people to save time and volunteer to help elderly individuals who require assistance. The hours spent caring for or spending time with senior citizens are deposited into the volunteer’s personal social security account. When the volunteers themselves become older and require help, they can utilize their accumulated ‘time bank’, facilitating the assignment of a volunteer to assist them. Countries like Switzerland and the UK have already adopted this scheme, and Singapore is considering its implementation.
National Court’s Order on Pension Schemes Overhaul
In December 2018, the Supreme Court of India urged the Government to review these pension schemes and modify them to foster convergence and deter multiplicity. The Court advised both the Government of India and the State Governments to ensure that the grant of pension to the elderly is more realistic, with considerations toward the availability of finances and the economic capacity of the Governments.
About National Social Assistance Programme (NSAP)
The National Social Assistance Programme (NSAP) is a welfare programme administered by the Ministry of Rural Development. Its implementation is carried out in both urban and rural areas.
Constitutional Provisions for NSAP
The NSAP represents a substantial step towards the fulfilment of Article 41 of the Constitution of India, which instructs the State to provide public assistance to its citizens in cases such as unemployment, old age, sickness, disablement, and other cases of undeserved want within the limit of its economic ability and development.
Key Facts About the National Social Assistance Programme
| Launch date | Type of scheme | Number of components (2019) |
|---|---|---|
| 15th August 1995 | Centrally Sponsored Scheme (CSS) | Five |
Overview of Central and State Pension Schemes
The central schemes in India are divided into Central Sector Schemes and Centrally Sponsored Schemes, the latter of which includes financial participation from both central and state entities. Currently, there are six core schemes and twenty-two optional ones. Most of these schemes prescribe specific financial participation from states. For instance, in the case of MGNREGA, state governments are required to incur 25% of the material expenditure.
