The Union Cabinet today increased pension under the National Old Age Pension Scheme from Rs.75 to Rs.200 per beneficiary per month for destitute persons of the age of 65 and above. This increase will be effective from April 1, 2006.

The proposed increase will extend much needed financial support to old and destitute persons to manage their livelihoods. 

A sum of Rs.1,430 crore for this purpose has been provided in the Union Budget 2006-07 as additional allocation. 

BACKGROUND:The Union Cabinet approved the proposal for launching National Social Assistance Programme (NSAP). NSAP has three components (i) the National Old Age Pension Scheme (NOAPS), (ii) the National Family Benefit Scheme (NFBS) and (iii) the National Maternity Benefit Scheme (NMBS). It came into effect on 15.8.1995 as a wholly Centrally funded programme to give financial assistance to families with little or no regular means of subsistence living below the poverty line. Under NOAPS, Rs.75 per month was given to destitute persons of 65 years and above.