Govt looks to streamline slew of social welfare schemes

Draft Cabinet note floated to merge pension, insurance schemes, revamp NREGA

The government is planning a revamp of some social sector schemes. It has been proposed state-sponsored insurance and pension schemes be merged, the scope of skill development widened and gaps in the Mid-Day Meal Scheme plugged.

According to a draft Cabinet note circulated, the Rashtriya Swasthya Bima Yojana (RSBY), the Aam Aadmi Bima Yojana (AABY) and the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) were sought to be merged. “This will reduce administrative costs. The revamped scheme will provide improved social security benefits in terms of life cover and health insurance,” said a government official, requesting anonymity. “Some schemes with allocations of less than Rs 100 crore might also be merged for effective delivery.”

The AABY was launched in 2007 for rural households, in case of death or disability of the head of the family or its earning member. In the same year, the government launched IGNOAPS for all citizens aged more than 65 and living below the poverty line. In 2008, it introduced RSBY to provide health insurance to below-poverty-line families and various workers and labourers.

The AABY, the IGNOAPS and the RSBY are administered by the finance ministry, the rural development ministry and labour ministry, respectively, which increases costs.

For 2014-15, the government has estimated an expenditure of Rs 150 crore on the AABY, though no Budget provisions were made for the two other schemes.

Experts say the plan to merge different schemes is easier said than done. “The pension and insurance schemes cannot be merged because pension is given to everyone,” said N C Saxena, former member of the Planning Commission. Changes are also being considered in the Mid-Day Meal Scheme, in terms of storage and serving conditions and supervision by teachers. The scheme provides free lunch to all school children.

“It should not be job of teachers to supervise the scheme,” said the official quoted earlier.

The government is also planning to bring about a change to the scheme for skill development of minorities, adding a new component on artisans and traditional craftsman. The scheme is aimed at providing training and employment to youth from minority communities.

It has also been proposed the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) be revamped by including agricultural workers.

The government is considering using labourers employed under the job guarantee scheme to construct durable agriculture assets such as bunds, embankments and small irrigation projects in farmlands, during the non-sowing period.

In his Budget 2014-15 speech, Finance Minister Arun Jaitley had said under the MGNREGS, the government would provide self-employment opportunities in rural areas through works that were productive, asset-creating and linked to agriculture and allied activities.

Besides revamping social sector schemes, the government is also planning to name schemes after eminent freedom fighters, social reformers and political leaders. Currently, of the 49 schemes and institutes named after eminent personalities, 16 are named after Rajiv Gandhi, five after Indira Gandhi, and two after Jawaharlal Nehru.

IN THE NEW SCHEME OF THINGS

• Govt-sponsored health, life and pension schemes proposed to be merged to cut administrative costs
• Some schemes with allocation of less than Rs 100 crore may also be merged for effective delivery
• Artisans and traditional craftsman could be added to the scheme for skill development of minorities
• Changes considered in the Mid-Day Meal Scheme with regard to storage & supervision by teachers