Elderly, widows to get Rs 1000 pension boost in Budget?

In a move that would bring some relief to elderly people and widows, the Finance Ministry is likely to increase the allowance under social security pension to `1,000 per month in the upcoming Budget,
Elderly, widows to get Rs 1000 pension boost in Budget?

NEW DELHI: In a move that would bring some relief to elderly people and widows, the Finance Ministry is likely to increase the allowance under social security pension to Rs 1,000 per month in the upcoming Budget, a senior official said.

“The government may revise the pension, which it feels is not adequate, under the social security scheme. Also, there has been no revision since the last 12 years, which is not adequate when considering the cost of living. The monthly allowance under the National Old Age Pension Scheme (NOAPS) and for widows will be increased to Rs 1,000 per month,” the official said.

Earlier in January, economists had urged the Finance Minister to increase social security pension. “The amount (for social security pension) has been Rs 200 per month. This is totally unacceptable. There is no reason to keep it so low. So, make it at least Rs 500, I would say even Rs 1,000, if possible and increase the coverage,” noted economist Jean Dreze had told Finance Minister Arun Jaitley during pre-Budget consultations.

“This (pension) is extraordinarily stingy. It is also a missed opportunity: NOAPS is a good scheme with low leakages and administrative costs that reaches some of the poorest members of the society. The government’s contribution should be immediately raised to Rs 500 (preferably more) at the very least,” a group of top economists had written to the Finance Minister.

Dismally low
Currently, the Centre’s contribution to old-age pension under the National Old Age Pension Scheme is just Rs 200 per month since 2006 and widows’ pension is Rs 300 a month

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