Policy Update
Sreeja Mukherjee
The Government of India established the National Social Assistance Programme (NSAP) on August 15, 1995, as a fully funded, centrally sponsored scheme to develop a national policy for social assistance for those living in poverty. To guarantee basic national standards for social assistance and the benefits that the states currently offer or may offer in the future, NSAP is administered by the Ministry of Rural Development (MoRD). It also seeks to ensure that social protection for beneficiaries everywhere in the country is uniformly available.
The program is a significant step in achieving the Directive Principles of State Policy, which are established in the Indian Constitution and require the State to implement various social initiatives within its financial capacity. These are meant to ensure that citizens have a sufficient source of income, enhance public health, raise living standards, and give children free and mandatory education, among other things. Article 41 explicitly directs the State to provide public assistance to citizens in unemployment, old age, sickness, and disability within the limits of its economic capacity.
The NSAP targets the destitute, who the States and UTs determine to be those who have little to no regular means of subsistence from their source of income or through financial support from family members or other sources. The National Maternity Benefit Scheme (NMBS), the National Family Benefit Scheme (NFBS), and the National Old Age Pension Scheme (NOAPS) were the three original components of the NSAP. On April 1, 2000, a new scheme, the Annapurna Scheme, was launched to provide food security for eligible elderly persons not covered under NOAPS. On April 1, 2001, the Ministry of Health and Family Welfare took over the National Maternity Benefit Scheme (NMBS) from the Ministry of Rural Development. Two new programs were launched in February 2009: the Indira Gandhi National Disability Pension Scheme (IGNDPS) and the Indira Gandhi National Widow Pension Scheme (IGNWPS).
Functioning
The National Social Assistance Programme (NSAP) represents a comprehensive social security framework implemented across all states and Union Territories in both rural and urban India. The Ministry of Rural Development allocates funds to states based on BPL population figures from the 2001 Census and poverty ratios established by the erstwhile Planning Commission in 2004-05.
The programme operates through a structured process beginning with beneficiary identification. In rural areas, beneficiaries are selected from BPL lists created by states and UTs according to Ministry of Rural Development guidelines from the 2002 BPL Census. Urban areas follow BPL lists prepared under the Ministry of Urban Housing and Poverty Alleviation’s poverty alleviation program. Existing beneficiaries not on current BPL lists continue receiving pensions if they met previous eligibility criteria.
The central eligibility criterion for all NSAP benefits requires applicants to belong to households below the poverty line. States and UTs receive 100% Central Assistance under NSAP, with funds released in two annual installments—50% as the first installment and the balance upon utilization of at least 60% of available funds. Benefits reach beneficiaries through direct bank transfers, post office accounts, or cash disbursement in some areas.
While Social Welfare Departments primarily implement NSAP in most states, implementation varies by region. The Rural Development Department handles implementation in Andhra Pradesh, Assam, Goa, Meghalaya, and West Bengal; the Department of Women & Child Development in Odisha and Puducherry; the Revenue Department in Karnataka and Tamil Nadu; and the Department of Labour Employment & Training in Jharkhand.
NSAP currently comprises five schemes:
- Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Provides ₹200 monthly to BPL persons aged 60-79 and ₹500 to those 80 and above.
- Indira Gandhi National Widow Pension Scheme (IGNWPS): Offers ₹300 monthly to BPL widows aged 40-79 and ₹500 to those 80 and above.
- Indira Gandhi National Disability Pension Scheme (IGNDPS): Provides ₹300 monthly to BPL persons aged 18-79 with disability levels of 80% or higher and ₹500 to those 80 and above.
- National Family Benefit Scheme (NFBS): Offers a one-time lump sum of ₹20,000 to BPL families who have lost their primary breadwinner aged 18-59.
- Annapurna Scheme: Provides 10 kg of food grains monthly to eligible elderly not covered under IGNOAPS.
Performance
According to the Comptroller and Auditor General of India’s (CAG) performance audit of NSAP covering 2017-18 to 2020-21, approximately 4.65 crore beneficiaries availed old age, widow, disability pensions, and family benefits annually. The Centre released an average of ₹8,608 crore per annum during these years.
In addition to central contributions, states and UTs allocated approximately ₹27,393 crores per year on average for pension and family benefits, demonstrating a significant state-level commitment to social security. On average, 2.83 crore beneficiaries were covered annually under NSAP with Central assistance during 2017-21.
The program has achieved substantial coverage across India, with 33 states/UTs also implementing their pension schemes alongside NSAP to provide additional support to vulnerable populations. Most states cover additional beneficiaries beyond the cap fixed for central assistance disbursement under NSAP.
However, the CAG audit revealed several implementation issues, including:
- A diversion of ₹2.83 crore was meant for NSAP to publicize other schemes of the Ministry.
- Additional diversion of ₹57.45 crore across six states/UTs (Rajasthan, Chhattisgarh, J&K, Odisha, Goa, and Bihar)
- For instance, in Rajasthan, NFBS funds were diverted to pay insurance premiums to LIC for BPL and Aastha Card holders under Pannadhay Jeevan Amrit Yojana.
Impact
NSAP has had a significant influence on the distribution of social security to underprivileged groups:
- Financial Security: By providing steady monthly pension support, NSAP has helped to reduce the economic vulnerability of widows, older people, and people with disabilities.
- Complementary Support: By encouraging states to create and execute their pension plans, the central plan has increased coverage and benefits over the bare minimum required by the federal government.
- Targeted Approach: The program acknowledges the increased dangers and deprivations faced by socially vulnerable groups and targets them individually.
- Expansive Coverage: With nearly 4.65 crore beneficiaries annually, NSAP has extensive reach across rural and urban areas in all states and UTs.
- Foundation for Social Protection: NSAP has established a nationwide framework for social protection that can be expanded and improved upon.
However, the relatively low pension amounts (₹200-₹500 per month) restrict the transformative potential of the program, especially given inflation and rising living costs over the years since the amounts were fixed.
Emerging Issues
The National Social Assistance Programme faces several critical challenges that impede its effectiveness as a social security framework. The central contribution of ₹200-₹500 monthly has become increasingly inadequate compared to current living costs, necessitating substantial state-level supplementation and calling for regular pension amount revisions indexed to inflation. Concerning financial integrity, a CAG audit uncovered the diversion of NSAP funds for scheme publicity and other unintended purposes, highlighting the urgent need for stricter financial controls and more robust auditing mechanisms.
The program’s effectiveness is further compromised by outdated beneficiary estimation methods that still rely on Census 2001 data, BPL Census 2002, and 2004-05 poverty ratios, which fail to reflect current demographic and economic realities. This necessitates updating beneficiary calculation frameworks using current demographic data and contemporary poverty metrics. Implementation quality varies significantly across states, with different departments handling the program and providing uneven additional support, creating disparities in social security coverage. Establishing minimum implementation standards and incentivizing states to improve delivery mechanisms could help address these inconsistencies.
Information, Education, and Communication activities under NSAP were not undertaken as originally envisaged, limiting program awareness and accessibility. Allocating a dedicated budget for awareness campaigns would ensure that eligible beneficiaries know about and can access the available schemes. The program also faces targeting efficiency challenges, as issues with BPL lists may exclude genuinely deserving individuals, though provisions exist to maintain benefits for existing beneficiaries not included in current BPL lists. Implementing more transparent and dynamic beneficiary identification processes while ensuring continuity for existing legitimate beneficiaries would improve targeting accuracy. Finally, since various departments across different states implement the program, coordination issues could impact consistent execution, making it essential to establish strong cooperation systems with frequent review sessions between federal and state entities.
Way Forward
The National Social Assistance Programme, a crucial pillar of India’s social security framework, requires strategic enhancements to effectively serve vulnerable populations. Central assistance amounts need significant revision to reflect current economic conditions and provide meaningful support to beneficiaries. This financial update must be paired with improved governance through transparent grievance redressal mechanisms, regular social audits, and strengthened monitoring systems to enhance accountability at all levels.
Judicious technology integration, particularly Direct Benefit Transfer and biometric authentication, can increase efficiency while reducing leakages, though implementation must ensure accessibility for elderly and disabled beneficiaries. Systematic convergence with complementary welfare schemes addressing livelihood enhancement, food security, and health insurance would establish a comprehensive social safety net targeting multiple dimensions of vulnerability.
To maintain relevance and effectiveness, NSAP requires a framework for periodic independent evaluation and responsive policy reform, enabling adaptation to evolving socioeconomic conditions and emerging needs. As India advances toward developed nation status by 2047, strengthening social security programs like NSAP is essential for truly inclusive development that upholds the nation’s commitment to equitable growth and social justice for all citizens, particularly the most vulnerable.
Appendices
Fig.1.Source:https://nsap.nic.in/#:~:text=PFMS%20SYSTEM%20HAS%20IN%20BUILT,AND%20HANDLING%20OF%20CPGRAMS%2D%20REG
Beneficiary Abstract: This chart displays beneficiary data for the 2022-2023 financial year across three NSAP schemes. The Indira Gandhi National Old Age Pension Scheme (IGNOAPS) shows the highest coverage at 2.21 crore beneficiaries, significantly outpacing the Indira Gandhi National Widow Pension Scheme (IGNWPS) with 0.68 crore beneficiaries. The Indira Gandhi National Disability Pension Scheme (IGNDPS) has the lowest coverage at just 0.08 crore beneficiaries, highlighting the varying scale of assistance across different vulnerable populations.
Fig.2.Source:https://nsap.nic.in/#:~:text=PFMS%20SYSTEM%20HAS%20IN%20BUILT,AND%20HANDLING%20OF%20CPGRAMS%2D%20REG
DBT Progress: This chart tracks Direct Benefit Transfer transactions (in crores) across all three pension schemes from 2019-2020 to 2024-2025. The accompanying table shows total yearly transactions fluctuating between approximately 17-22 crore, with IGNOAPS consistently representing the largest share. Transaction volumes peaked in 2022-2023 at 22.42 crore before declining to 17.38 crore in 2024-2025, demonstrating the program’s evolution in benefit delivery mechanisms over this six-year period.
References
Comptroller and Auditor General of India. (2023). Report No. 10 of 2023: Chapter 1 – An introduction to National Social Assistance Programme. https://cag.gov.in/uploads/download_audit_report/2023/5-Chapter-1-064d229f8419ed1.30966051.pdf
Ministry of Rural Development. (n.d.). National Social Assistance Programme. https://nsap.nic.in/#:~:text=PFMS%20SYSTEM%20HAS%20IN%20BUILT,AND%20HANDLING%20OF%20CPGRAMS%2D%20REG
MyScheme. (n.d.). National Social Assistance Programme – Indira Gandhi National Old Age Pension Scheme. https://www.myscheme.gov.in/schemes/nsap-ignoaps
Panchayat and Rural Development Department, Government of Assam. (n.d.). National Social Assistance Programme. https://pnrd.assam.gov.in/schemes/national-social-assistance-programme-0
UMANG App. (n.d.). National Social Assistance Programme (NSAP). https://web.umang.gov.in/landing/department/national-social-assistance-programme-nsap.html
About the Contributor: Sreeja Mukherjee is affiliated with IMPRI and pursuing Masters in International Electoral Management and Practices at TISS, Mumbai.
Acknowledgement: The author extends sincere gratitude to Dr. Arjun Kumar and Aasthaba Jadeja for their invaluable guidance and support.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
Read more at IMPRI
China’s dual stance: Response to Operation Sindoor and its long-standing alliance with Pakistan
Pahalgam Aftermath: Why Strategic Restraint Is India’s Strongest Response
