Social security and the story of two Budgets

Context: 

In presenting the Union Budget 2023-24, Finance Minister Nirmala Sitharaman claimed that the central government has improved the quality of life and ensured dignity for all citizens since 2014.

Status of Social Security Schemes:

• Since 2007, social security pensions being given by the central government under the National Social Assistance Programme (NSAP), have remained fixed at a very low sum of ₹200 for the elderly and ₹300 per month for widows and persons with disabilities. 
• In addition, only those who appear on the obsolete and discredited Below Poverty Line (BPL) lists prepared as in Census 2001 are given pensions.
• As a result, the budget for the NSAP has remained constant, at approximately ₹9,000 crore, and is steadily reducing in real terms.  

In Rajasthan:

• The Rajasthan Budget of 2023-24 will introduce a Minimum Income Guarantee and Pension law, offering 125 days of work through rural or urban employment guarantee and a social security pension of at least ₹1,000 per month. 
• The pension will increase by 15% annually.

About National Social Assistance Programme (NSAP):

• It is a centrally sponsored social security scheme that provides non-contributory income security to the elderly, widows and persons with disabilities from “BPL families”.
• The central government’s contribution to the three main schemes under this programme, the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), the Indira Gandhi National Widow Pension Scheme (IGNWPS), and the Indira Gandhi National Disability Pension Scheme (IGNDPS), has remained the same over the last 15 years.
• The percentage share allotted to NSAP of the total expenditure budget has steadily declined.
• In Contrast, today, Rajasthan provides social security pensions to over 90 lakh people, with the NSAP covering only a small part of the pension of 10 lakh pensioners. 
  • And in this Budget, approximately 30% more than the entire national social security pensions budget under NSAP.

Criteria for social security schemes:

On Central level:

• Central assistance to States/Union Territories under NSAP is determined based on the BPL population of the State.
• For calculating the estimated number of beneficiaries under each scheme for each State, the central government relies on the population figures of Census 2001.
• The stringent criteria of providing disability pensions only to those with a disability level of 80% or more, has excluded lakhs of the disabled even within the obsolete BPL category.

In Rajasthan:

• In 2013, the Rajasthan government changed its eligibility criteria to expand the coverage of pensioners by making economically vulnerable women above 55, and men above 58 eligible for old-age pension. 
• It also permitted widows with adult children to receive a widow pension and included anyone with more than 40% disability to receive a disability pension. 
• As a result, the number of social security pensioners in the State grew from 14 lakh to above 90 lakh now, all of whom will come under the cover of the proposed law.

Ensure Minimum Conditions And Dignity:

• Rajasthan’s Minimum Income Guarantee and Pension law is a landmark and pioneering step that other states and the central government should follow.
• Need to take the necessary steps to change existing schemes into an Act that provides more credible entitlements, strengthens accountability and offers the same legal protection as other welfare laws.
• The Central government must recognise that pension is a right for work done by unorganized sector workers, who are contributing seminally to the GDP and economy all their lives. 
• Minimum Wage demand should be the recognition of the right to ensure minimum conditions for workers to live their retired lives with dignity.

News Source: The Hindu