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National Social Assistance Programme(NSAP) and Annapurna

 

 

 

1.         Introduction

 

 

            The Directive Principles of State Policy in the Constitution of India enjoin upon  the State to undertake within its means a number of welfare measures.  These are intended to secure for the citizens adequate means of livelihood, raise the standard of living, improve public health, provide free and compulsory education for children etc.   In particular, Article 41 of the Constitution of India directs the State to provide public assistance to its citizens in case of unemployment, old age, sickness and disablement and in other cases of undeserved want within the limit of its economic capacity and development. It is in accordance with these noble principles that the Government of India on 15th August 1995 included the National Social Assistance Programme in the Central Budget for 1995-96.    The Prime Minister in his broadcast to the Nation on 28th July 1995 announced that the programme will come into effect from 15th August 1995.

 

 

            The National Social Assistance Programme (NSAP) then  comprised of National Old Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS) and National Maternity Benefit Scheme (NMBS).  These programmes were meant  for providing social assistance benefit to the aged, the BPL  households in the case of death of the primary breadwinner and for maternity.  These programmes were aimed to ensure minimum national standards in addition to the benefits that the States were then providing  or  would  provide in future.

 

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            The scale of benefit and eligibility for various schemes of NSAP when first started were as follows:        

 

(i)      National Old Age Pension Scheme (NOAPS): Rs 75 per month is provided per beneficiary for destitutes above 65 years.   The scheme covered destitutes having little or no regular means of subsistence from his / her own sources of income or through financial support from family members or other sources. In order to determine destitution, the criteria, if any, currently in force in the State / UT Governments were adapted. The Government of India reserved the right to review these criteria and suggest appropriate revised criteria.

 

(ii)     National Family Benefit  Scheme (NFBS):  A grant of Rs 5000 in case of death due to natural causes and Rs 10,000 in case of accidental death of the “primary breadwinner” is provided to the bereaved  household under this scheme.  The primary breadwinner as specified in the scheme, whether male or female, had to be a member of the household whose earning contributed substantially to the total household income.  The death of such a primary breadwinner occurring whilst he or she is in the age group of 18 to 64 years i.e., more than 18 years of age and less than 65 years of age, makes the family eligible to receive grants under the scheme.

 

(iii)    National Maternity Benefit Scheme (NMBS):   Under the scheme, Rs 300 per pregnancy upto the first two live births is provided. The beneficiary should belong to a household Below the Poverty Line (BPL) according to the criteria prescribed by Government of India.


 

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In 1998, the amount of benefit under NFBS was raised to Rs 10,000 in case of death due to natural causes as well as accidental causes. The assistance under the National Maternity Benefit Scheme which was at Rs 300/- was increased to Rs 500/- per pregnancy.

 

2.       Transfer of National Maternity Benefit Scheme to D/o Family Welfare

 

During the course of deliberations to consider National Population Policy in the second meeting held on 15th June,1999, the Group of Ministers observed that National Maternity Benefit Scheme being implemented by the Ministry of Rural Development could be assigned to the Department of Family Welfare to become part and parcel of the Population Stabilization Programme.  On receipt of a communication in this regard from the Planning Commission, the Ministry of Rural Development agreed to transfer NMBS to the Department of Family Welfare from the Financial Year 2001-2002 and thus the Scheme was transferred to that Ministry w.e.f. 1st April,2001. 

 

3.       Annapurna Scheme

 

On 1st April, 2000 a new Scheme known as Annapurna Scheme was launched. This Scheme aimed at providing food security to meet the requirement of those senior citizens who, though eligible, have remained uncovered under the NOAPS. Under the Annapurna Scheme 10 kgs of food grains per month are provided free of cost to the beneficiary.  The number of persons to be benefited from the Scheme are,  in the first instance,  20% of the persons eligible to receive pension under NOAPS in States/UTs

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4.       Transfer of NSAP and Annapurna Scheme to State Plan

 

In the National Development Council Meeting held in January 1997 to discuss the Draft Approach to the Ninth Plan, several Chief Ministers of States suggested for transfer of the Centrally Sponsored Schemes to States.  As per the Approach Paper to the Ninth Five Year Plan, it was emphasized that in principle Centrally Sponsored Schemes should be confined to schemes of an inter-state character, matters impinging on national security, selected national priorities where central supervision is essential for effective implementation. As a result of the review of the Centrally Sponsored Schemes by the Planning Commission in consultation with the Mo RD, it was decided to transfer  NSAP and Annapurna to the State Plans from the year 2002-03.

 

With this change, the funds for the operation of these schemes are now being released as Additional Central Assistance (ACA) to the States by the Ministry of  Finance. The ACA to be provided to the States/UTs for the NSAP and Annapurna Scheme is decided by the Planning Commission, while the State-wise allocation of ACA is made by the Ministry of Rural Development and Planning Commission. The ACA provided to the States / UTs under NSAP and Annapurna are to be utilized by the States/ UTs  as Welfare Schemes of NOAPS, NFBS or free food grains to the aged by taking one or two or all  of the  three schemes or in any another combination in accordance with their own priorities and needs. The Additional Central Assistance to the States constitute a general additionality over and above the normal allocation of the States for such welfare schemes as reflected in the States  Budget, both under Plan and Non-Plan. The States have to therefore, provide the Mandatory Minimum Provision ( MMP) for these schemes under their own budget. The MoRD has a role in monitoring the expenditure against the ACA and the MMP.


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5.       Features of the Schemes

 

Some of the other important features of the schemes are as follows:

 

a)      Selection

The Gram Panchayat / Municipalities are expected to play an active role in the identification of the beneficiaries under the three schemes.

 

b)      Disbursement

Apart from the disbursal of benefits through the accounts of the beneficiaries in Banks or in Post Office Savings Banks or through Postal Money Order the assistance under NOAPS, may also be disbursed in public meetings such as Gram Sabha meetings in rural areas and by neighbourhood / mohalla committees in urban areas.

 

c)      Monitoring

The States / UTs have the flexibility to implement the schemes through any State Govt. Department. They have to however, designate a Nodal Secretary at the State level to report the progress of implementation by coordinating  with different departments concerned with the implementation of the schemes. The progress of implementation of the schemes  is to be reported through quarterly reports in a given monitoring format by the 15th of month of the following quarter. Non reporting of the physical and financial progress reports is construed as lack of progress and therefore, may result in the non-release of additional central assistance for the last quarter of the financial year. Since the ACA allocations for the schemes lapse at the end of the financial year, the instalments cannot be released during the next financial year, even if a State Govt. reports progress subsequent to the cut-off dates fixed as above.

 

 

 

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State Level and District Level Committees have been constituted for the purpose of the monitoring and evaluation of the schemes.  The State Level Committee is headed by the Chief Secretary and District Level Committee is headed by the Collector. The States can review, if necessary, the functioning of the existing Committees at the State and District levels to ensure   better results and coordination. The nomination of the representative of the MoRD and the Planning Commission in the State level committees can also be considered by the States / UTs.

 

 

d)      Guidelines of   the Programme

Guidelines were issued by the MoRD to all the States and UTs when  NSAP  was  a Centrally Sponsored  Programme.  The State Governments may now issue their own guidelines for more effective implementation of the schemes.  The State Governments have been given the requisite flexibility in the choice and implementation of the schemes.  It is expected that State Governments will streamline disbursements so that the payments are made timely, will also have a mechanism for a more transparent system of sanction especially in the event of death of beneficiaries under NOAPS, adopt  a system of annual verification and will also  actively involve the Gram Panchayats.

 

 

e)   State-run Schemes

Several States supplement the old age scheme with their own budgets. Most States are giving more than the amount made available under NOAPS while some States cover additional beneficiaries and others have reduced the age for eligibility.

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6. Enhancement of Pension amount under NOAPS during  2006-07

Finance Minister in his Budget Speech for the year 2006-07 had  announced as follows:-

            National Social Assistance Programme

 

 29. “ Old age pensions are granted under the National Social Assistance Programme(NSAP) to destitute persons above the age of 65 years at Rs.75 per month. This woefully inadequate. I propose to increase the pension to rs.200 per month. I have provided Rs.1,430 crore for 2006-07 and additional funds, if required, will be provided during the course of the year. I would urge State Governments to make an equal contribution from their resources so that a destitute pensioner would get at least Rs.400 per month. I also propose to work with the Department of Posts and the banks to establish, within two years, a system under which the pension will be credited directly to the account of the beneficiary in a post office or a bank.”

 

            Accordingly the budgetary provision was revised from Rs.1190 crore during 2005-06 to Rs.2480.97 crore during 2006-07. Hence, all States and UTs except Uttar Pradesh started disbursing at least Rs.200 per month per beneficiary in 2006-07 under NOAPS.

 

As per the  budget announcement, the Minister of Rural Development had addressed all the State Governments to make an equal contribution from their resources so that a destitute pensioner would get at least Rs. 400 per month. As per reports received, the States of Tamil Nadu, Uttrakhand, West Bengal, Rajasthan, NCT of Delhi, UT of Andaman and Nicobar Islands and Pondicherry have already started disbursing Rs.400 per month or above for pensioners under NOAPS.

 

In order to establish within two years a system under which a pension will be credited directly to the account of the beneficiary in a Post Office or a Bank., the State

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Governments have been asked to give their comments so that a consensus may be arrived at regarding method of disbursing pensions.  

 

7.       Financial and Physical  Achievements

Summary of the combined allocations, total releases under the three Schemes and the coverage of  beneficiaries in respect of each of the Schemes after these were transferred to the State Plan are as under :-

Financial Progress

 (Rs. in lakhs)

Year

Combined Allocation

Total Releases

2002-03

68000.00

65709.86

2003-04

67987.00

60226.79

2004-05

118987.00

103201.74

2005-06

119000.00

118971.00

2006-07

248097.00

248961.44

 

Physical Progress

Year

Coverage of Beneficiaries

 

NOAPS

NFBS

Annapurna

2002-03

7471509

85209

796682

2003-04

6534000

209456

958669

2004-05

8079386

261981

850768

2005-06

8002561

272828

857079

2006-07#

8645371

171232

750319

 

            # No. of beneficiaries are still not reported from some of the States.

The State/UT wise details for the years 2002-03 to 2006-07 are at Annexures(enclosed).

 

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Statement on NSAP