Govt planning to revamp social pension schemes

The government plans to revamp the National Social Assistance Programme (NSAP), which includes the scheme for old age pension, widows and disabled. To revamp it, the government will need an additional expenditure of Rs 10,000-12,000 crore, a report in the Times of India said.

Currently, the annual budget for the scheme is Rs 9,500 crore. While the proposal is ready, it will be first sent to the Expenditure Finance Committtee.

However, the Goods & Services Tax (GST) will play a crucial role in this. The revenue collection in the first quarter has exceeded Centre's expectations, which can pave way for such provisions, the report said.

The Sumit Bose Committee has recommended that the government link pensions under NSAP with the consumer price index in order to link it with BPL households.

The committee has also recommended reducing eligibility age for window pension to 18 years from current 40 years.

The ministry could restructure the funding pattern keeping in mind the increased outgo, the report said.

The Centre could also ask states to contribute 40 percent to the bill, if needed.

The ministry is contemplating extending pension scheme to families with 'one deprivation' or 'two deprivations'. If this is considered, then nearly 13 crore households will be brought under the scheme. Currently, the scheme covers 3.5 households.

The proposal also suggests raising old-age pension from Rs 200 to Rs 500. Of this Rs 500,the  Centre will pay Rs 300 and the rest will be paid by the state.

On disability, the ministry plans to change criteria from 18 years to the person's date of birth and also from 80 percent disability to 40 percent disability.

The pension could be raised from current Rs 300 to Rs 500.