Delhi Govt Plans Old Age Pension Emergency Fund

New Delhi: Learning from the recent episode where the old age pension could not be disbursed to over 1 lakh beneficiaries due to the absence of the Centre's share, the Delhi govt has decided to make a separate provision in its own budget to deal with such emergencies in the future.
Officials said that Delhi's social welfare minister, Saurabh Bharadwaj, has asked the department to move a proposal for the consideration of the council of ministers for the utilisation of state funds if the situation arises.The decision was made in a recent meeting of the social welfare department, which was chaired by Bharadwaj. With the Delhi assembly polls due in Feb next year, officials said govt does not want a situation where the disbursement of pension gets affected due to technical reasons.
"The minister emphasised in the meeting that the possibility of delay in the receipt of central funds cannot be eradicated. He has directed for making an arrangement wherein state funds are utilised in case of delay in the receipt of central funds in the future to ensure timely and regular disbursement to the elderly, many of whom are severely dependent on the pension," an official said.
Delhi govt provides a monthly financial assistance of Rs 2,000 to elderly citizens of 60-69 years, and Rs 2,500 to those aged 70 years and above. There are nearly 4.5 lakh senior citizens benefiting from the scheme. The officials added that nearly 1.06 lakh beneficiaries get Rs 200 (for the age group 60-79) and Rs 500 (for the age group 80 and above) per month from the Centre. Since the central scheme amount is very low, it is topped up by state funds.
According to officials, central govt stopped providing funds to Delhi in Sept 2021 due to the non-resolution of an issue regarding the refund of the then unspent amount to central govt.
While Delhi govt approved the utilisation of state funds to ensure the uniform release of old age assistance, the arrangement was stopped in March 2024, leading to a disruption in the release of the monthly pension to 1.06 lakh beneficiaries. Delhi govt then followed up the matter with the Centre and managed to get the funds released in Aug 2024. Delhi receives nearly Rs 44 crore from the Centre every year under this head.
"Though it is expected that the process of seeking and granting funds under the central scheme will now be smooth and regular, the minister is of the view that the possibility of delay in the future cannot be overlooked. That's why there is a need for an alternate arrangement," said an official.