Most states yet to hike old-age pensions

Most states have not yet implemented the enhanced old-age pension scheme that was announced by Finance Minister P Chidamabaram in Budget 2006-07.

Under the National Social Assistance Programme, announced in the Budget, a pension of Rs 400 a month is to be granted to destitute persons above the age of 65.

While the finance minister increased the Centre's contribution from Rs 75 a month to Rs 200, states were expected to contribute Rs 200. Barring Tamil Nadu, Rajasthan and Uttaranchal others continue to contribute only Rs 25.

Rural Development Minister Raghuvansh Prasad Singh, whose ministry runs the scheme, said the Centre had kept its promise but the states had been dragging their feet. "We are writing to states to increase their share," Singh said today.

The Budget had provided Rs 1,430 crore for the programme, with the option of additional grants during the course of the year.

In his Budget speech, Chidambaram had said, "I would urge state governments to make an equal contribution from their resources so that a destitute pensioner would get at least Rs 400 per month. I also propose to work with the department of posts and banks to establish, within two years, a system under which the pension will be credited directly to the account of the beneficiary in a post office or a bank."

The other two schemes under the National Social Assistance Programme are the National Family Benefit Scheme, under which Rs 10,000 is given to a BPL family on the death of a bread-winner, and National Maternity Benefit Scheme, under which Rs 500 is given to a pregnant woman.

A government statement in Rajya Sabha in December had said that the estimated number of beneficiaries to be covered under the old-age pension scheme was 84,82, 445, while the number of beneficiaries under the national family benefit scheme was 4,59,388.