Performance Audit of the National Social Assistance Programme, Ministry of Rural Development

Findings

1. The scheme aims at universal coverage through proactive identification, but is run demand-driven — benefits went only to those who applied, leaving out the eligible who were unaware or lacked the means to apply.

   “The Scheme aims universal coverage through proactive identification; however, NSAP is being implemented in demand-driven mode as the benefits were provided to only those beneficiaries who applied for it… The eligible beneficiaries who were unaware/lack resources to apply for the benefits were left out of ambit of NSAP. Further, some States could not even cover beneficiaries equal to the cap fixed by the Ministry.”Executive Summary

2. Beneficiaries are still being picked from below-poverty-line lists that are not regularly updated, even though the Socio-Economic Caste Census that was meant to replace them has been finalised.

   “The beneficiaries were to be selected from the BPL list till the Socio-Economic Caste Census (SECC) was finalised; however, the beneficiaries are being selected from BPL list even after finalisation of SECC data even though these BPL lists are not being regularly updated.”Executive Summary

3. Only 11 states and union territories paid the pension monthly as the guidelines require; four paid quarterly, two annually, and 17 paid on an ad hoc basis with no regular cycle.

   “Only 11 States/UTs disbursed monthly pensions as envisaged in NSAP guidelines. Four States were making quarterly pension payment whereas two States were making annual pension payment. 17 States/UTs paid did not ensure periodic pension payment and paid pension on ad-hoc basis.”Executive Summary

4. Pension went to people who did not qualify — ₹30.47 crore to 57,394 people under 60 on the old age pension, ₹26.45 crore to 38,540 people under 40 on the widow pension, and ₹0.57 crore to 414 people who were not widows, including male family members.

   “In 14 States, IGNOAPS pension of ₹ 30.47 crore was paid to 57,394 ineligible persons who were less than 60 years of age… In 17 States/UTs, IGNWPS pension of ₹ 26.45 crore was paid to 38,540 ineligible persons who were less than 40 years of age. Further, in six States/UTs, IGNWPS pension of ₹ 0.57 crore was paid to 414 persons other than widows, including male family-members.”Executive Summary

5. On the disability pension, ₹4.36 crore went to 5,380 people under 18 and ₹15.11 crore to 21,322 people whose disability was below 80 per cent or could not be established.

   “In 12 States/UTs, IGNDPS pension of ₹ 4.36 crore was paid to 5,380 ineligible persons who were less than 18 years of age. In 16 States/UTs, IGNDPS pension of ₹ 15.11 crore was paid to 21,322 persons whose disability was either below 80 per cent or could not be ascertained.”Executive Summary

6. 2,43,286 people in 15 states were short-paid ₹42.85 crore because the enhanced rate for those over 80 was not applied, and 92,602 beneficiaries in 11 states were short-paid ₹61.71 crore because pension did not start from the effective date.

   “Non-disbursement of pension from pension effective date resulted in short payment of ₹ 61.71 crore to 92,602 beneficiaries in 11 States/UTs… cases of overpayment of pension of ₹ 0.63 crore to 2,151 persons in seven States/UTs and short payment of pension of ₹ 42.85 crore to 2,43,286 persons in 15 States/UTs were noticed.”Executive Summary

7. In 26 states and union territories, ₹2 crore of pension was paid for 2,103 beneficiaries after they had died, and in 14 more ₹3.55 crore was overpaid to 2,243 people drawing more than one pension.

   “In 14 States/UTs, due to payment of more than one pension to an individual beneficiary, over payment of pension of ₹ 3.55 crore was made to 2,243 persons… In 26 States/UTs, payment of pension of ₹ two crore was made in cases of 2,103 beneficiaries even after the death of said NSAP beneficiaries.”Executive Summary

8. ₹2.83 crore earmarked for informing people about the scheme was diverted to publicise other schemes, and ₹57.45 crore was diverted to other purposes in six states; ₹18.78 crore lay idle for one to five years in eight states.

   “Funds of ₹ 2.83 crore earmarked for IEC activities under NSAP were diverted for campaigning of other schemes. Further, total funds of ₹ 57.45 crore were diverted in six States/UTs for other schemes/purposes… Funds amounting to ₹ 18.78 crore were lying idle for a period ranging from one to five years in eight States/UTs.”Executive Summary

9. Central expenditure on the programme was ₹34,432 crore over 2017-21 while states and union territories spent ₹1,09,573 crore, reaching 2.83 crore beneficiaries a year through central allocations and a further 1.82 crore a year on state funds.

   “During 2017-21, Government of India allocated ₹ 34,432 crore for NSAP. Further, States and UTs also allocated ₹ 1,09,573 crore as additional assistance for pension and for coverage of additional beneficiaries. NSAP reached out to 2.83 crore beneficiaries annually through central allocations and additional 1.82 crore beneficiaries through States/UTs funds on an average per year during 2017-21.”Executive Summary

10. The National Family Benefit Scheme was not being implemented in many states and union territories at all, and the programme as a whole was only partially implemented in some.

    “NSAP was either not fully implemented or being partially implemented in some of the States/UTs. In particular, NFBS was not being implemented in many States/UTs. NSAP was to be implemented in all urban and rural areas throughout the country, but it was either not being implemented or partially implemented by some of the States/UTs, leading to deprival of NSAP benefits to the eligible beneficiaries in those areas.”Executive Summary

Fact-checks citing this report

• ◑Lacks contextSocial Security — A Caring Government, Passionate Society. India has always been a caring society. The social security schemes of the Governments have to be made more meaningful… strengthen the Pension and Health Insurance safety nets for all kinds of labourers.