Why in news?
An evaluation commissioned by the Union Ministry of Rural Development found that fixed pensions under the National Social Assistance Programme (NSAP) have not increased since 2012 and have lost nearly 45 per cent of their purchasing power due to inflation. The study suggests creating a National Floor Pension linked to the Consumer Price Index to protect beneficiaries’ real income. News reports highlighted that states providing higher top‑ups, such as Andhra Pradesh and Telangana, achieve better outcomes.
Background
The National Social Assistance Programme was launched on 15 August 1995 to provide a basic level of income support to the elderly, widows, persons with severe disabilities and families that lose their breadwinner. The scheme embodies the Directive Principles of State Policy (Articles 41 and 42), which urge the state to assist citizens in cases of old age, sickness, disability and widowhood. The central contribution has remained between ₹200 and ₹500 per month for more than a decade; state governments may add their own top‑ups.
Components of NSAP
- Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Provides ₹200 per month to persons aged 60–79 living below the poverty line; those aged 80 and above receive ₹500.
- Indira Gandhi National Widow Pension Scheme (IGNWPS): Offers ₹300 per month to widows aged 40–79.
- Indira Gandhi National Disability Pension Scheme (IGNDPS): Gives ₹300 per month to persons aged 18–79 with more than 80 per cent disability.
- National Family Benefit Scheme (NFBS): Pays a lump sum of ₹20,000 to a household when its primary breadwinner (aged 18–60) dies.
- Annapurna: Provides 10 kg of free food grains per month to eligible senior citizens who are not covered under IGNOAPS.
Concerns raised by the evaluation
- The ₹200–₹500 pensions set in 2012 now have the purchasing power of roughly ₹109–₹275 due to inflation.
- Many beneficiaries rely on these transfers as their only regular income; stagnation undermines their dignity and health.
- The report recommends indexing pensions to inflation and establishing a minimum National Floor Pension so that social assistance keeps pace with rising costs.
Importance of reforms
Updating NSAP benefits would strengthen India’s social safety net for vulnerable groups. Linking assistance to inflation would ensure that economic growth translates into real support for the elderly, widows and disabled persons.
Sources: IE