disability pension

Budget 2024: How the Modi Government Has Neglected Social Security Pensions Once Again

There is an urgent need to review the National Social Assistance Programme for it to be effective and meaningful.

This article is the seventh in a series on the state of the Indian economy co-curated by the Centre for Financial Accountability, New Delhi and The Wire. Read the first article here, the second here, the third here, the fourth here, the fifth here and the sixth here.

While presenting the Union Budget 2024-25, Union finance minister Nirmala Sitharaman lauded the Bharatiya Janata Party government’s achievements. She claimed that over the last 10 years it has ensured social inclusivity and growth for every strata through its commitment to alleviating social and financial vulnerability. Yet. the nominal increase in budgetary allocation for welfare programmes challenge this notion of ‘sabka sath, sabka vikas’.

Union government’s National Social Assistance Programme (NSAP), is one such critical scheme that provides non-contributory income security to the elderly, women and persons with disabilities in the below poverty line (BPL) category. The minimal allocations made to NSAP in today’s budget are both unsurprising and consistent with a decade-long pattern characterised by poor implementation, and restricted funding. This trend indicates the government’s reluctance to meaningfully address the issues of social security and economic protection for vulnerable and marginalised populations.

Reducing budgetary allocations

The budget for NSAP increased by Rs 16 crore, from Rs. 9636 crore (BE) in FY 2023-24 to Rs. 9652 crore in the current budget. While it looks like a marginal increase, however, this is a decline in real terms when indexed to inflation. As a percentage share of the total budget outlay, the allocation to NSAP has steadily decreased in the last decade, reducing from 0.58% in FY 2014-15 to just 0.20% in FY 2024-25.

Source: Union Budget FY 2013-2014 to FY 2023-25

(click here for corresponding numbers)

With the total budget outlay nearly tripling in the past decade, the budget allocated to NSAP has remained stagnant at approximately Rs.9500 crore.

This decrease is notable, especially considering the expansion of coverage under the three primary sub-schemes of NSAP has increased from 2.12 crore individuals to 2.97 crore individuals during the same period.

Also read: Interim Union Budget Follows Tradition of Modi Government’s Apathy Towards Most Vulnerable

Additionally, the expenditure trend over the past decade shows that the actual expenditure is consistently lower than the budget and revised estimates. Between FY 2014-15 and FY 2022-23, there has been an average underspending of Rs 331 crore in the past nine years. Underspending has ranged from Rs 646 crore in FY 2016-17 to Rs 473 crore in FY 2021-22. This indicates that funds allocated for NSAP are not fully utilised, largely due to mismanagement and the lack of transparency in the process of disbursal of funds at the state and central levels.

Only during the first year of the pandemic, in FY 2020-2021, the budget was revised nearly fivefold from Rs 9196 crores to Rs. 4,2617 crores when a one-time payment of Rs 1,000 was made to NSAP beneficiaries. However, the budgetary allocation for the subsequent years show only a nominal increase even though millions of people are still recovering from the economic shock of the pandemic.

Source: Union Budget FY 2013-2014 to FY 2023-25

(click here for corresponding numbers)

Increased fiscal burden on states

The NSAP is one of the six ‘core of the core’ centrally sponsored schemes (CSS) under the Ministry of Rural Development. According to the 2014 Guidelines, the NSAP is designed to provide monetary assistance from the Union Government for three distinct demographics in the BPL category.

Under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), assistance of Rs 200 per month is provided for the elderly between the ages of 60 and 79 and Rs 500 per month for those aged 79 and above. For widows, a sum of Rs 300 per month is provided under the Indira Gandhi National Widow Pension Scheme (IGNWPS). For persons with disabilities, Rs 300 is provided for those between the ages of 18 to 79, and Rs 500 for those above the age of 79 under the Indira Gandhi National Disability Pension Scheme (IGNDPS).

The contribution from the Union government for old-age pensions has remained unchanged since 2007; for widow and disability pensions, this amount was last increased to Rs 300 in 2011.

As a CSS, the funding for this programme is shared between the Union and states. Under NSAP, pension amounts across all sub-schemes are also supplemented with an additional contribution from the states.

In this regard, the guidelines recommend that the states at minimum match their contribution to that of the Union government. However, in the absence of any legal obligation, this discretionary approach has led to significant variation in the pension amounts received by beneficiaries across states and Union territories (UTs). State contributions range from Rs. 50 to Rs. 2300 per month in some states while others contribute no amount at all. Therefore, it is crucial for the Union government to allocate a substantial amount, exceeding Rs 200, to ensure that pensioners receive a sufficient sum irrespective of the contribution from the states.

Typically ‘core of the core’ CSS have a fiscal sharing ratio of 20:80, 25:75, or even 40:60, wherein the Union government predominantly shoulders the financial burden. However, the NSAP is an exception to this norm where the fiscal responsibility has been shifted to the states. Across 36 states and UTs, the trend indicates that a significant number of the states are contributing between 5 to 10 times the recommended amount.

RTI Reply from MoRD: State and central contribution to major sub-schemes under NSAP
*RTI Reply from August 2023, since then pension amounts may have increased in some states

Exclusions: coverage, eligibility and proactive identification

Central assistance to states and UTs under NSAP is determined on the basis of the BPL population of the state. For calculating the estimated number of beneficiaries under each scheme for each state, the Union government relies on the population figures of the 2011 Socio Economic and Caste Census.

However, with the delay in the 2021 census and the failure of state governments to proactively identify and enlist new beneficiaries, the information on eligible beneficiaries used to determine the expenditure under NSAP does not precisely capture the actual beneficiaries.

Moreover, BPL lists are susceptible to inaccuracies and errors. A recent investigation by the Reporters’ Collective revealed that the Family Identity Data Repository, an algorithm used by the Haryana government to assess the eligibility of beneficiaries under welfare schemes, incorrectly deemed numerous eligible individuals across NSAP as ineligible due to inaccurate data entry or wrong predictions by the algorithm.

In addition to the exclusion resulting from the state government’s failure to enlist beneficiaries, many elderly individuals also experience exclusion due to the fixed quota imposed by the Union government for each state on the number of beneficiaries enrolled under the IGNOAPS.

The latest edition of the India Ageing Report estimates that the elderly population in the country stands at 14.9 crore (as per 2022 estimates). Of this, two-fifths, constituting 5.96 crore individuals, belong to the poorest wealth quintile. Among this group, 18.7%, or close to 1 crore individuals, report having no source of income and face extreme financial vulnerability.

Also read: Union Budget: Revised Fiscal Deficit 5.8% in Current Year, Expected to Be 5.1% in 2024-25

In states such as Rajasthan and Bihar, where the state government provides near-universal pensions, the fiscal burden is borne by the state exchequer. The number of beneficiaries receiving old age pensions in these states alone amounts to Rs 59 lakhs and 36 lakhs, respectively, in contrast to the national coverage of Rs 2.21 crore.

The NSAP Guidelines establish strict age criteria for IGNWPS, which limits central government assistance to widows aged 40 and above. Although some states have lowered this age requirement, central assistance to states is only provided to women who meet the age requirement of the specified guidelines. This stringent age criteria hinders single women below the age of 40, who are frequently the primary earners for their families, from receiving meaningful income assistance.

Furthermore, in many states, the IGNWPS is limited to women below the age of 60 after which they become eligible for old-age pensions. For example, in Delhi, due to fixed caps in IGNOAPS, applications for old-age pensions have not been accepted since 2018. As a result, women above the age of 60 find themselves without any financial support.

Similarly, according to the 2014 guidelines, financial assistance is extended to individuals with a disability level of 80% or more under the IGNDPS. This criteria inadvertently leads to exclusion as it disregards individuals with disabilities below the cut off who may still face significant challenges and require monetary support. It is crucial to align these criteria with the definitions of persons with disabilities as outlined in The Rights of Persons with Disabilities Act, 2016, which recognises individuals with disabilities as those with a disability level of 40% or more.

Addressing the lack of proactive beneficiary identification and eliminating exclusionary criteria is essential for obtaining a more precise estimate of individuals requiring social security measures. The 2014 guidelines aspire to achieve universal coverage in the BPL category through NSAP. However, due to existing budget and policy constraints, the programme is currently functioning in a demand-driven mode, wherein benefits are given only to those who apply for it, hindering the realisation of its envisioned universal coverage.

Social security pensions play a crucial role in ensuring financial security and well-being, their adequacy and accessibility directly impact the socio-economic stability of vulnerable individuals. The longstanding demand of people’s movements has been that a universal and non-contributory minimum monthly pension equal to 50% of the minimum wage must be established that is periodically adjusted to inflation.

Similar to the Minimum Guaranteed Income Bill, 2023 in Rajasthan, the NSAP should be legislated into an Act, thereby securing the necessary legal protections that are afforded to other welfare rights such as the National Food Security Act and the Mahatma Gandhi National Rural Employment Guarantee Act. Social security pensions are not ‘revdis’ but central to the rights-based approach enshrined in the Directive Principles of State Policy to ensure minimum conditions for people to live with dignity.

Asmi Sharma is associated with Jan Sarokar and the Pension Parishad Campaign.

Defence Ministry to Contest Hundreds of Disability Pensions Granted to Jawans, Officers in Court

The move has come after the defence ministry tightened rules of eligibility for the disability pension nearly a month ago.

New Delhi: The Ministry of Defence (MoD) has decided to contest hundreds of cases of disability pension awarded to retired officers and jawans in court nearly a month after it tightened rules for its eligibility.

The Adjutant General’s branch in a letter to legal cells of all Army commands has said “as directed by the competent authority at MoD, writ petitions be filed in the jurisdictional high court”. These petitions will be filed against various Armed Forces Tribunal (AFT) judgements, the Tribune reported.

In September, the defence ministry had rolled out ‘Entitlement Rules for Casualty Pensionary Awards to the Armed Forces Personnel-2023′, changing how disability pension is calculated for veterans.

This was done after an internal assessment done by the Comptroller and Auditor General (CAG) found that 40% of the officers were claiming disabilities to get higher pensionary benefits. Those deemed eligible for disability benefits get 20-50% higher pension and income tax exemptions. As per the assessment, the annual pension outflow is around Rs 10,000 crore and the tightening of rules is likely to save Rs 4,000 crore.

Also read: Opposition, Ex-Military Personnel Slam Centre’s New Disability Pension Rules

Now the defence ministry has prepared a list of officers and jawans, who have been awarded some sort of disability pension, which was appended to the AG’s letter. The list comprises beneficiaries divided under 10 categories and has been drawn up on the basis of which the soldiers were granted disability pension, the Tribune report said.

“The cases have been listed after careful sifting of a huge volume of files,” said the AG’s letter sent out last month. According to the report, the defence ministry has been at the receiving end of adverse judicial strictures passed by courts, citing “delay” in processing cases after the pronouncement of AFT judgments. The Army is seeking a stay on the various judgments and wants similar petitions to be clubbed.

The AG branch has asked the legal cells of the commands to monitor the cases in the respective high courts. While legal cells will be vetting each case at the local level, any ambiguity will be decided by the AG office, the report said.

‘Poor Accessibility Standards, Lack of Govt Interest Mars Progress’: Disability Rights Activists

Activists have called for a uniform pension balanced with the inflation rate, higher education and employment opportunities and an accessible environment for persons with disabilities.

Today, December 3, is observed as International Day of Persons with Disabilities.

New Delhi: Several rights activists in India have called for urgent steps to address the issues of accessibility of buildings, higher education, and provisions for pension for the persons with disabilities.

While the Rights of Persons with Disabilities (RPWD) Act, 2016, has brought massive changes over the last few years and given more teeth to persons with disabilities, many departments dealing with their rights and entitlements are not much aware about the Act.

Therefore, what needs to be done is mass sensitisation, general awareness and attitudinal change towards persons with disabilities. This is required to be done at a high-level so that it harmonises with the United Nations Convention on the rights of persons with disabilities.

Moreover, the government’s Accessibility India Campaign has not been very successful, but it has created awareness among people, as many new ramps can be seen in the new public buildings. However, easy access to other public facilities is also required.

The National Policy on Disability is still in the draft stage, and needs to be first notified, and then operationalised in all sectors, including health, education, skill development, employment and tourism. The need of the hour is mainstreaming the inclusion of people with disabilities across all sectors and ministries.

Anjlee Agarwal, executive director, Samarthyam National Centre for Accessible Environments, told The Wire, “If we look at the history, there have been many changes from the medical model to the social model to the inclusive model of disability. The inclusive model has worked well in India in terms of inclusion across all the ministries and departments. It also includes considering people with disabilities not just as beneficiaries but also as people who can contribute to the society.”

Also read: India’s New Draft National Policy on Disability Is Disconnected From Reality

‘Ensure disability inclusion, provide uniform pension, and higher education’

Agarwal said she has a few demands from the government. First, disability inclusion should happen across all sectors, departments and ministries; second, the disability pension should be balanced with the inflation rate so that a person with disability who is living below the poverty line and not employed can at least get two meals a day, and get rehabilitation services out of that pension.

Third, she said there needs to be some uniformity in the amount of pension given to the persons with disabilities across all states.

“There is no synergy in the disability pension that is being paid in various states since it is a state subject. Delhi pays Rs 2,500 per month as pension whereas in Odisha or Chhattisgarh, the amount varies between Rs 800 and Rs 2,000,” she said.

The rights activist noted that while primary education is free for the children with disabilities, no such attention is given to their higher and technical education.

“So there should be a mandate in colleges and technical education [institutions] to provide them with higher education. Also, there should be no discrimination that persons who are blind cannot opt for science courses or those with hearing or speech impairment cannot go to IITs or IIMs.”

‘States not showing interest, spending adequate funds on accessibility of buildings’

Agarwal, who has conducted accessibility audits in Delhi Metro, Dilli Haat and various national monuments and government buildings, said that her final demand would the implementation of the Accessibility India Campaign.

“The decentralisation of the campaign has happened in the last two to three years. It has now become the responsibility of the states to implement the campaign and see to its monetary requirements,” she said.

She added, “The states are not showing any interest in either implementing [the Accessibility India Campaign] or spending funds on the accessibility of the public or private buildings. So what is happening is that the campaign has taken a backseat in terms of visibility and accessibility of buildings and public transport.”

As such, she said, “whatever has happened under the campaign was when the funds came from the Union Ministry [of Social Justice and Empowerment] under the Scheme for Implementing of Persons with Disabilities Act, 1995 (SIPDA). But when it was passed to the states, there was no cohesion or implementation.”

“In the new buildings, there is no mandate to cover disability or penalise those violating the law,” she said, adding that “the violations are happening every day.”

Also read: Systemic Delays, Red Tape Plague Disability Rights Space in India, Say Activists and Experts

‘Make accessibility standards mandatory like fire laws for all built environment’

She demanded that “it [accessibility standards] should be made mandatory like the fire law in all the built environment, transportation eco-system and information and communication technology. And if there is a violation, then strict punitive action should be taken against that particular department and agency. Additionally, capacity building should happen for all the big implementation firms and construction firms.”

“The National Building Code, 2016, mandates the accessibility elements for different kinds of buildings, and this should be made compulsory for all the concerned players and agencies,” she said. “Likewise, for the roads and highways, the Indian Roads Congress codes on universal accessibility should be followed strictly,” she added.

Some progress made but a long way to go

Subhash Chandra Vashishth, advocate and director of Centre for Accessibility in Built Environment Foundation, said in the last five to six years, the disability space has seen several important developments.

These included the notification of the Rights of Persons with Disabilities Act, 2016, and its Rules in 2017, and the launch of the Accessible India Campaign, which focused on three major verticals of accessibility – public buildings, transportation, and the website.

“In this period, a major positive change that I see is an effort on the part of the government to mainstream the issue of disability within different ministries. Under Section 40 of the Rights of Persons with Disabilities Act, the Government of India has tasked different ministries to develop their own sector-specific accessibility guidelines. This is a huge change from the way earlier governments had looked at disability inclusion,” he said.

“Earlier, only the Ministry of Social Justice and Empowerment was solely responsible [for the implementation of the Act],” he said, adding that “now, there’s an effort to ensure that each ministry takes responsibility for disability inclusion and implementation of the Act with respect to the areas governed by them.”

He pointed out that some of the ministries have drafted their own accessibility guidelines, which will be implemented, and “will be enforceable once notified under Rule 15 of the RPWD Rules.”

He also said that the persons with disabilities are provided with a 10% goods and services tax concession on cars – both adapted and automatic, and manual transmission. “They will also get toll tax exemption on the highways,” he added.

Several cracks still remain

“When we listen to the users [of these facilities], [we realise] that there are still several cracks [in the implementation of the Act], he said.

“The larger need at this point of time is sensitisation of the community, both in the government and general public, as well as among the persons with disabilities and their families, about their rights. There is also a need to enforce the provisions of the law and policies on the ground and also create monitoring mechanisms.”

He further said that the “people with disabilities also need to be given a representation in politics.” He added that “this is already being done by reserving seats for them and nominating them in municipal corporations and panchayats in some states such as Rajasthan.”

He also called for the government to reach out to rural areas where a large number of persons with disabilities cannot access basic facilities, and built environment and transportation.

SC Expresses Displeasure With Union Govt’s Pleas Against Soldiers’ Disability Pension

‘We must observe and express our displeasure at the manner in which the appellants have been filing appeals against grant of disability pensions, even where the legal issue is settled.’

New Delhi: The Supreme Court has expressed disappointment over the Union government filing appeals against a disability pension given to officers of the Indian Army even in cases where the courts have settled the legal position already, The Tribune has reported.

A bench led by Justice Sanjiv Khanna said, “We must observe and express our displeasure at the manner in which the appellants have been filing appeals against grant of disability pensions, even where the legal issue is settled.”

The court dismissed the Union government’s appeal against an order of the Armed Forces Tribunal on the payment of disability pension to a retired Lieutenant Colonel.

The Supreme Court in March had dismissed another plea filed by the Union government against an order passed by the Armed Forces Tribunal granting disability pension to a soldier.

The Tribunal in 2018 allowed a soldier’s claim for rounding off the disability element of his pension to the extent of 50% in accordance with a Supreme Court ruling that this rounding off was available not just to officers invalidated out of service, but also to officers who superannuated after completion of tenure.

The Tribune had then reported that a soldier had sustained injuries leading to a disability which while “not attributable to military service” according to a medical board, was “aggravated by stress and strain of service”.

As per rules, only one criterion out of the two – “attributable” or “aggravated”, is required for grant of disability pension, the report said. However, the soldier’s claim was rejected and when he moved the Armed Forces Tribunal, the judges asked the government to release his disability pension.

The Union government’s appeal to the Supreme Court against the payment was dismissed.

“Experts dealing with the subject say that despite multiple directions to the Ministry of Defence (MoD) from time to time by the Defence Minister and strictures by the Supreme Court, the practice of filing appeals against disabled soldiers has not slowed down,” Tribune has noted.

Amidst Surgical Strike Hype, Government Cuts Army Disability Pensions

A day after the surgical strikes, the Ministry of Defence issued a letter that dramatically reduced pensions for soldiers disabled during military service.

Defence minister Manohar Parrikar. Credit: PTI

As army para-commandos slipped silently across the Line of Control (LoC) on September 28 on a perilous mission to punish anti-India jihadis and their Pakistani army backers, the government of India quietly put the finishing touches on a plan to slash disability pensions for injuries incurred in the line of duty.

On September 30, the day after India began celebrating the successful “surgical strikes”, the Ministry of Defence (MoD) issued a letter that dramatically reduced pensions for soldiers invalided out of the army after being crippled by battle injuries or by injuries directly attributable to hazardous military service.

It was just as well that the commandos returned without significant casualties. If a young soldier with severe injuries – what cold medical jargon terms “100% disability” – from that operation had been invalided out from service, he would have found his monthly pension slashed from Rs 45,200 to just Rs 27,200 – down by Rs 18,000 a month.

The team leaders in the “surgical strikes”, majors with ten years of service, have been hit even harder – with pension for 100% disability slashed by over Rs 70,000 a month. Junior commissioned officers, the spine of the army, are also badly affected. Naib subedars with 26 years of service will find their 100% disability pensions slashed by Rs 40,000 a month.

“Shocked is an understatement to describe what we feel,” said a top serving general. “Instead of joining us in celebrating the strikes, the MoD has stabbed us in the back.”

Two weeks later, as the BJP uses military images and the army’s intrepid cross-LoC raid as vote-catchers in four impending state elections, news is filtering through the army hierarchy that the slashing of disability pensions includes not just battle disability pensions, but also pensions for medical disabilities found to be attributable to, or aggravated by, military service. These include training accidents, including parachuting, respiratory ailments caused by long exposure to extreme altitudes, loss of digits/limbs due to frostbite, etc.

This bombshell has been lobbed onto the army through a draft gazette notification dated September 30, issued ironically by the “department of ex-servicemen welfare”. In this document, posted on the defence ministry website, the reduced rates are listed out in a paragraph titled: “Enhancement in rate of disability pension”.

It scraps a decade-old system that the sixth central pay commission (CPC) instituted in 2006. In that, disability pensions arising from battle injuries, or disabilities attributable to/aggravated by military service, were calculated on a “percentage basis”, related to the last pay drawn.

Now, for unspecified reasons, disability pensions will be calculated according to a far less generous “slab system” that existed earlier. The seventh CPC has proposed, and the government accepted, that the earlier system be reinstated.

Adding insult to financial injury, civilians will continue to be paid pensions according to the earlier “percentage system”.

Until the September 30 notification, officers and soldiers who had suffered 100 per cent disability in battle were entitled disability pension that matched their last pay drawn. In addition, they would draw a “service component” of pension, which amounted to 50 per cent of their last pay drawn.

Under the new rules, which come into effect retrospectively from January 1, 2016, the “service component” remains unchanged, but a “slab system” has been introduced for disability pension, which is significantly lower than the percentage system – Rs 27,000 a month for officers, 17,000 for junior commissioned officers and Rs 12,000 for all other ranks.

A soldier with five years of service earns Rs 30,400 a month; 100% disability pension would match that figure. In its place, he will now be entitled to a flat rate of Rs 12,000 a month. A major with 10 years of service earns Rs 98,300 a month. In place of that figure for 100% disability, he will get just Rs 27,000 a month.

For lower disability percentages, disability pension is calculated on a pro-rata basis.

Besides battle casualties, most service-related disabilities are those categorised as “attributable to/aggravated by military service”. This too has been badly hit for the army.

According to the army headquarter’s calculations, the new “slab system” would cause a loss of Rs 2,040 a month to a senior sepoy with 100% disability, Rs 3,472 to a subedar and Rs 6,855 per month to a lieutenant colonel.

By arrangement with Business Standard

Update (October 11)

Ajai Shukla adds:

The so-called government “denial”, which PTI first carried, and was picked up by newspapers like the Times of India, is not an official denial at all. It is a plant that does not name any government office or official – only “sources”.

When the government denies a story, it puts out an official denial, and posts it on the Press Information Bureau (PIB) website. This so-called denial is from anonymous sources. Nobody in government wants to put their name to a patently false denial.

All of Monday, the government has been getting hammered on social media after I reported the reduction of disability pensions for soldiers invalided out of service as a result of battle injuries. The government simply had no defence.

So the government did what governments tend to do. Call up a few pliable reporters, plant an anonymous denial and then wait for the hordes of Modi supporters on social media – who, mind you, are not interested in disabled soldiers’ welfare, but in exonerating the government that has treated them so shabbily – to pick up the “non-denial” and hold it aloft as a sign of victory.

It’s sad that this is how we treat our soldiers – all of whom know the truth. And its even sadder that a trusted agency like PTI, and a widely-read newspaper like the Times of India, cannot differentiate between a “source-based story” that is obviously a plant, and an official denial.