The government today launched an old age pension scheme that will benefit 16 million indigent citizens above the age of 65 and entails an annual expenditure of Rs 3,772 crore for the state exchequer.
Named after late Prime Minister Indira Gandhi, the scheme seeks to provide Rs 200 per month as the union government's contribution and a matching amount by the states to each beneficiary.
Launching the scheme, Prime Minister Manmohan Singh asked the states to increase their contribution to the benefits that were being given and ensure that "no one is left out".
At present only 11 states provide a matching contribution of Rs 200 per person towards the scheme, which was originally introduced in 1995 with a beneficiary getting a mere Rs 75 as the Centre's contribution.
The PM also promised to review the scheme to include senior citizens above 60 years in the below poverty line (BPL) category, widows and physically disabled.
Finance minister P. Chidambaram said the state government should ensure that every beneficiary opens an account, either with a bank or post office, so that the money could be directly credited into their account. Observing that by July next year it could be possible to transfer the fund through the click of a mouse, he wanted the states to ensure that there were no leakage of funds.
TNS
