The state government’s total financial commitment on various social security pension scheme for a year is estimated to be around Rs 2,838.63 crore. The burden is due to the increase in monthly pension from Rs 500 to Rs 1,000 under various Social Security Pension schemes. The government has also decided to use smart card mechanism to disburse the money in order to have a better control on disbursements.
Chief minister J Jayalaithaa in her memorandum said there were 2.3 million beneficiaries under these schemes. The central assistance is Rs 200 per beneficiary per month for three pension schemes only, including Indira Gandhi National Old Age Pension Scheme, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme.
The state government supports five pension schemes with its own funds. Of the total financial commitment, the Government of India contributes only Rs 282 crore a year. “This has caused a huge financial burden on the state government. The state government asked the Centre to enhance the central grant from Rs 200 to Rs 1,000 per month per beneficiary, to sanction funds for all the Social Security Pension Schemes implemented by the Tamil Nadu government without limiting the sanction to only three schemes, to remove the ceilings on the number of beneficiaries benefited under the central schemes and accordingly, the Government of India may provide additional assistance of Rs 2,556.82 crore per annum,” the memorandum stated.
