The gap in coverage is highlighted by an Impact Assessment and Evaluation of the National Social Assistance Programme, commissioned by the Union Ministry of Rural Development and conducted by the Academy of Management Studies. The study estimates that nearly six crore eligible people may be excluded from central support.  File Photo.
India

Centre renews pension scheme, but outdated caps may exclude millions

The Union Cabinet approved the continuation of the National Social Assistance Programme (NSAP) from 2026-27 to 2030-31 on October 14.

Vismay Basu

The Union Government has renewed its national social assistance programme for five years, with an outlay of ₹53,428 crore, but has left the old-age and widow pension schemes unchanged. The decision raises a larger question: how many eligible people remain outside central support because beneficiary limits are based on outdated population and poverty estimates?

The Union Cabinet approved the continuation of the National Social Assistance Programme (NSAP) from 2026-27 to 2030-31 on October 14. The programme, to be renamed the Pradhan Mantri Samajik Sahayata Yojana, is projected to cover 3.20 crore beneficiaries across 36 States and Union Territories.

The gap in coverage is highlighted by an Impact Assessment and Evaluation of the National Social Assistance Programme, commissioned by the Union Ministry of Rural Development and conducted by the Academy of Management Studies. The study estimates that nearly six crore eligible people may be excluded from central support. 

In a July reply to Parliament, the government said NSAP covered more than three crore people, while about 5.9 crore additional pensioners received assistance through state-funded schemes. Around nine crore people received pensions through central or state-specific schemes. A 2023 Comptroller and Auditor General audit found that beneficiary lists continued to rely on poverty lists that were not regularly updated, even after the Socio-Economic Caste Census had been finalised. Although NSAP aims at proactive identification, the audit found that assistance was being provided largely to people who applied.

A 2023 Comptroller and Auditor General audit found that beneficiary lists continued to rely on poverty lists that were not regularly updated, even after the Socio-Economic Caste Census had been finalised. Although NSAP aims at proactive identification, the audit found that assistance was being provided largely to people who applied.

A 2023 Comptroller and Auditor General audit found that beneficiary lists continued to rely on poverty lists that were not regularly updated, even after the Socio-Economic Caste Census had been finalised. Although NSAP aims at proactive identification, the audit found that assistance was being provided largely to people who applied.

It also flagged weak verification, irregular payment schedules and shortcomings in monitoring and grievance redressal. The October renewal makes the next set of programme guidelines important: the government has yet to announce whether the old-age and widow beneficiary caps will be revised.

As per central pension rates, people aged 60-79 receive ₹200 a month, rising to ₹500 at age 80. Widows aged 40-79 receive ₹300 a month, also rising to ₹500 at age 80. The government’s July reply said there was no proposal under consideration to revise pension assistance at that time. States add their own top-ups, ranging from ₹50 to ₹5,700 a month as of September 2026. In several States and Union Territories, the average monthly pension is around ₹1,100, according to the Centre.

The renewed programme does raise disability assistance and expands eligibility. The monthly central payment will increase to ₹375 for beneficiaries aged up to 79 and ₹625 for those aged 80 and above. The qualifying disability threshold has been lowered from 80% to 40%, and the minimum age requirement has been removed.

The government projects that coverage under the disability pension will rise from 8.33 lakh to 27.48 lakh. Revised guidelines are due within three months. The five-year outlay averages about ₹10,686 crore a year, compared with an NSAP allocation of ₹9,652 crore in 2025-26.

These figures are not directly comparable measures of annual spending, but they offer a benchmark for assessing the renewal. The key test will be whether the revised guidelines expand access for eligible people who are currently outside the central scheme, or continue to leave states responsible for filling the gap.

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