Welfare pensions likely to be hiked ahead of polls

THIRUVANANTHAPURAM: Election season is upon us. And, in an apparent move to woo voters ahead of the two back-to-back polls, the state government is considering a hike in social-security pension. Though it is yet to take a final call on the amount, there are indications that there would be an increase of Rs 100-200. The LDF, in its 2021 assembly election manifesto, had promised to raise the pension amount from Rs 1500 to Rs 2,500. But, the new government could not carry out any increase owing to the financial constraints that stemmed from restrictions on off-budget borrowing by the Union government. The last time the pension was revised was in 2021, when the last budget of the first Pinarayi Vijayan government announced a Rs 100 hike. The government has not made any final decision so far. But there would be an increase shortly. The poll promise would have been realised much earlier if not for the Union governments restriction on borrowing, a source in the government said. The government is exploring the possibility of hiking pensions ahead of the upcoming local-body elections. The state has around 62 lakh beneficiaries of welfare pension schemes, including social-security pensioners and welfare fund board pensioners, who get Rs 1,600 a month. The numbers may vary every month, depending on the number of people who meet the mustering requirements. As per the government order for pension payment in September, the state had 48.80 lakh social security pensioners and 5.99 lakh welfare fund board pensioners. In September, the state spent Rs 716.93 crore to make the payment for social security pensioners while the rest was met through the Centres contribution. The state governments spending on welfare fund board pensions was Rs 94.39 crore. The state is having a tough time meeting pension payment with the Union government revising conditions for market borrowings in 2022-23. Since that year, borrowings by the Kerala State Social Security Pension Limited were considered off-budget borrowings. Such off-budget items are then adjusted from the states net ceiling for market borrowings.