The state government is preparing the ground to cut the number of social security pensions being distributed to old age, widow and handicapped beneficiaries. Officials are formulating criteria for pensions to prune the list. As per new guidelines, those who have a 4-wheeler, if any family member files I-T return, if any member of a family receives post-retirement pension from the government, those whose monthly power consumption crosses 300 units will not be eligible for pension. Under these criteria, at least 4,000 to 5,000 beneficiaries will lose pensions in each district, amounting to around 60,000 state-wide. The new lists have already been displayed even in village secretariats. This has triggered panic among beneficiaries across the state.
Compensating the increase
YS Jagan Mohan Reddy promised to increase pension by Rs 250 every year, but beneficiaries are demanding when the rise in pension will come into effect because the government has completed one year in May. It is known that the government is struggling to pay salaries and pensions on time. Sources say the government is trying to reduce the number of beneficiaries to ease the burden of raising pension amount by Rs 250. If the number is reduced, it need not spend more on the account.
Cuts in all schemes
The YSRCP government has disbursed Rs 70,000 crore to various sections of people under Navaratnalu. Some schemes are yet to be launched. The government needs Rs 1.2 lakh crore every year to keep up with its promises. This is in addition to salaries to employees and pensions to retired staff. On the other hand, gap is growing between revenue and expenses. To overcome this situation, the government is exploring ways of increasing revenue by 10 per cent by increasing various taxes apart from cutting back on social security pensions. It has already raised land registration charges and power tariff. An exercise is going on to increase life tax of vehicles.
Keeping afloat
The YSRCP government can’t discontinue any of the schemes without tasting the wrath of people. So it has to continue the risky ride on the tiger. It also has to face the onslaught of opposition if it abandons its pet welfare programmes. The government is yet to waive the interest of DWCRA groups. It needs Rs 150 crore a day to run the administration. Adding to this, government employees have intensified their agitation demanding scrapping of Contributory Pension Scheme, as promised by Jagan before elections. As a solution to all these woes, ruling party leaders devised a plan under which all welfare schemes will see 10 per cent cut in spending besides new taxes to raise revenue.
Welfare-induced crisis
Andhra Pradesh has already broken its own record in taking loans. The government managed to pay salaries in September, but it needs Rs. 10,000 crore more to meet its scheme obligations this month. It is finding it tough to obtain loans. The government needs Rs 5,000 crore for the first round of waiver of DWCRA groups and another Rs 5,000 crore for Jagananna Vidya Deevena. Finance department is hard-pressed to procure funds. Economic experts are warning that the AP government will face a serious financial crisis in a few months if the situation does not improve.
