In the 2025 Union Budget, the government has once again turned a blind eye to the pressing need for increased funding for social security pensions. The allocation for the National Social Assistance Programme (NSAP) remains stagnant at ₹9,652 crore—exactly the same as last year. This continued neglect is a glaring reflection of the government’s indifference to the plight of the elderly, widows, persons with disabilities, and other marginalised groups who depend on these meager pensions to make ends meet.
Even as inflation rises and more people qualify for pensions, the government has steadily slashed NSAP’s share of the total budget. In 2014-15, it accounted for 0.58% of spending—by 2025-26, that figure has plunged to a dismal 0.19%. In real terms, the budget has shrunk, squeezing an already inadequate pension system that hasn’t seen an update since 2007. Notably, the allocation for NSAP in 2007 was ₹8,447 crore. Cumulative inflation since 2007 has exceeded 100%, making the lack of increase in pension allocations even more egregious.
The Reality of Stagnant Pensions
For over a decade, the budget for NSAP has remained stagnant, failing to account for inflation or the growing cost of living. Back in 2014, the scheme was allocated ₹10,547 crore, but by 2025-26, that number has shrunk to ₹9,562 crore—a cut even in absolute terms. Adjusted for inflation, the real value of pensions has plummeted, making an already dire situation worse.
Currently, NSAP covers around 3 crore beneficiaries under three sub-schemes:
● Indira Gandhi National Old Age Pension Scheme (IGNOAPS): 2.21 crore elderly individuals
● Indira Gandhi National Widow Pension Scheme (IGNWPS): 65.73 lakh widows
● Indira Gandhi National Disability Pension Scheme (IGNDPS): 10.9 lakh persons with disabilities
Under this scheme, the government doles out a pittance—₹200 per month for the elderly and ₹300 for widows and persons with disabilities. This isn’t “assistance”; it’s abandonment. Prices have soared, yet pensions remain stagnant, leaving nearly 3 crore people struggling to survive on crumbs. The refusal to link pensions to inflation is nothing short of a policy failure, pushing the most vulnerable deeper into precarity.
Adding to this injustice, the government continues to use the 2001 population census—23 years outdated—to determine beneficiaries, even though India’s demographics have changed drastically. The Below Poverty Line (BPL) classification is also discredited, failing to capture those who need support the most.
A Stark Contrast: Government Pensioners vs. BPL Elderly
While neglecting the most vulnerable, the government is generous towards its own pensioners. There are 64.88 lakh government pensioners, and 4% of the GDP is spent on them every year. This year alone, the 3% increase in Dearness Relief (DR) / Dearness Allowance (DA) will cost the exchequer ₹13,000 crore, and the 8th Pay Commission will add even more to the burden. Yet, nothing is allocated for the poor. This is not just neglect—it is a criminal allocation of resources.
Fiscal Burden on States
NSAP is a centrally sponsored scheme, meaning that states are expected to match the Centre’s contribution. As a result states are paying 5 to 10 times more their own resources to provide even meager pensions because the central allocation is so insufficient. The Centre’s refusal to enhance funding places an undue financial burden on state governments, which are already struggling with their own budget constraints.
Pension Parishad Demands
The failure to increase social security pensions is not just a budgetary oversight—it is a deliberate policy choice that continues to push millions into deeper economic distress. The Pension Parishad has long advocated for:
● Universal and Non-Contributory Pensions: At least ₹4,000 per month per beneficiary, with the Centre and states contributing equally.
● Inflation-Indexed Pensions: Regular upward revisions in pension amounts to maintain real value.
● Universal Coverage: Expanding pensions to all eligible households under the National Food Security Act (NFSA), moving beyond outdated BPL criteria.
● Abolition of Aadhaar Mandates: Ensuring Aadhaar is not a barrier to pension entitlements under NSAP.
Incremental changes are no longer enough—the entire pension system in India needs a complete overhaul. With the largest population of elderly citizens projected for the near future, we are on the brink of missing a crucial opportunity to ensure that social security is a foundation, not an afterthought.
Being a widow, elderly, or disabled should entitle an individual to minimum social security. If these pensions are further diluted, we risk leaving millions behind, exposing a failure to prioritise the welfare of those who need it the most.
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