Move may help the Congress renew its appeal to a traditional constituency; activists raise objections
In yet another move that the ruling Congress Party hopes will help renew its appeal to a traditional constituency, the ministry of rural development has indicated it is likely to accept the recommendations of a panel that has suggested the universalization of pensions.
The task force headed by Planning Commission member Mihir Shah was set up in October to undertake a comprehensive review of the National Social Assistance Programme (NSAP) dealing with various pension programmes of the government.
However, economists and activists were unimpressed.
At a meeting on Monday under the banner of Pension Parishad led by activists Aruna Roy and Baba Adhav, they said the phased universalization approach recommended by the panel showed the government was not serious about mobilizing resources for what they called an “urgent demand”. Roy is a member of the National Advisory Council headed by Congress president Sonia Gandhi.
“What we are proposing is a universalization after exclusion” not based on cut-offs currently stipulated by the poverty line, Shah told reporters after handing over the recommendations to rural development minister Jairam Ramesh.
“We want complete consonance between what is decided for the National Food Security Act and National Social Assistance Programme.” Both will be based on the Socio-Economic Caste Census that is being conducted by the rural development ministry and the Census Commission of India and is expected to be completed soon.
The recommendations to be implemented in the first phase or 2013-14 include relaxing the age criterion for widows to receive pension from 40 years to 18 “because young widows also face very serious problems. And we want to extend the coverage to single, divorced, separated and abandoned women also…because the government is deeply committed to the empowerment of women. I think this would be a very strong step in that direction”, Shah said.
In the case of old age pensions, the panel suggested it be indexed to inflation.
The Shah panel has also called for providing assistance to persons with 40% disability rather than the presently stipulated 80%. Explaining the rationale for this recommendation, Shah said, “There is an internationally accepted definition of 40% disability that is accepted in all such cases.”
Rural development minister Ramesh, in his remarks, said he was in “total agreement with the recommendations” and would put it up to the cabinet for implementation.
Shah said the goal should be to roll out the scheme through the direct benefit transfer scheme based on the Aadhaar or unique identity number.
While some of the demands of the Pension Parishad, such as the dropping of the poverty line criterion for determining pension beneficiaries and linking pension to inflation as with government servants, have been included in the panel’s recommendations, Ramesh said that these would be implemented from 2014 onwards.
The panel’s suggestions come within days of the federal budget announcing the creation of a women’s bank.
“The government seems to be preparing the ground to say that women matter. They are carefully nurturing that segment” of potential voters, said N. Bhaskara Rao, who heads the Centre for Media Studies think tank. “These schemes will definitely be talking points for the government in the run-up to the 2014 elections.”