The government has proposed an increase in the “’National Social Assistance Programme (NSAP)’ — old-age pension, widow pension and disability pension” as a result of which all are waiting for the state of revenues post-GST.  The revision of social pension shall require Rs.10,000 – 12,000 crore over and above the current budget of Rs.9,500 crore. Although the Rural Development Ministry has worked on the said proposal but it shall be put forward to the Expenditure Finance Committee only once the scenario becomes clear on the availability of funds.

Reportedly said, “GST will be the main factor in deciding the fate of the proposal. If the funds are available, we are ready”. However, expectations are such that the funds shall not fall short for executing the proposal as the revenue from the first month of GST regime has far exceeded the expectations of the government.

The Sumit Bose committee had recommended that the government link pensions under NSAP, given to BPL households, to the consumer price index and reduce the eligibility age for widow pension from 40 years to 18 years.

At present, the total cost is borne by the Centre alone, however, it may ask states to share 40% of the bill, still to be decided.

The proposal states that the old age pension might be raised from Rs.200 to Rs.500 of which the Centre will pay Rs 300 and states Rs 200. While the pension covers 3.5 crore households, extending it to those with “one deprivation” will spread the net to 8.72 crore households and extending it to those with “two deprivations” will spread it to 5.5 crore households. The ministry favours instituting widow pension for those aged 18-39 years while agreeing to pay a one-time grant for remarriage. On disability, the ministry is ready to change the eligibility criteria from 18 years to the person’s date of birth, and from 80% disability to 40% disability. The pension too is to be raised from Rs 300 to Rs 500. According to estimates, the Centre will need around Rs 22,000 crore to fund the revamped pensions. Introduction of state’s share of 40% will bring in Rs 10,000 crore and considerably ease the Centre’s burden.

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