India's Indira Gandhi National Old Age Pension Scheme Lags in Coverage and Contribution
The Indira Gandhi National Old Age Pension Scheme (IGNOAPS), a flagship cash assistance program for the elderly, is in urgent need of reform. The central government's contribution of ₹200 per person per month has remained unchanged since 2007, while state top-ups have increased. Inflation has significantly eroded the real value of the central assistance, reducing its purchasing power by half since 2013. Despite recommendations from various committees to increase assistance and expand coverage, the number of beneficiaries (2.2 crore) has remained stagnant, far below the projected elderly population (17-20 crore). Surveyed beneficiaries overwhelmingly cite increased prices and insufficient funds to meet daily needs.
Key Points
- IGNOAPS, a centrally-sponsored scheme, has not seen an increase in central contribution (₹200) since 2007, despite rising state contributions.
- Inflation has significantly eroded the real value of the central assistance, reducing its purchasing power by half since 2013.
- Recommendations from various reports, including the MoRD and PAC, have called for increasing the assistance amount and expanding coverage.
- The scheme's coverage of 2.2 crore beneficiaries is significantly lower than the projected elderly population of 17-20 crore.
- Beneficiaries report that the current pension is inadequate to cover daily needs due to increased prices.
Exam Facts
- Indira Gandhi National Old Age Pension Scheme (IGNOAPS) is part of the National Social Assistance Programme (NSAP).
- Central contribution of ₹200 per month for 60-plus age group, ₹500 for 80-plus category, frozen since 2007.
- The real value of ₹200 in 2012 has eroded to just around ₹99.
- MoRD report estimated IGNOAPS beneficiaries should be nearly 17 crore at present and about 20 crore by 2030.
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