Move to turn welfare pension into votes; arrears will be cleared before local body elections

THIRUVANANTHAPURAM: The LDF government is planning to turn the distribution of social security pension into votes. The government has been distributing welfare pensions without any interruptions for the past year. Prior to that, there was an arrear of five months. Two instalments of that arrear were cleared during the last financial year. The plan is to distribute the remaining three instalments before the local body elections. Although there was an initial plan to distribute one instalment during Vishu, it was postponed due to financial constraints. That instalment will now be given in May. Another instalment will be given during Onam, and the final one just before the announcement of the local body elections. By clearing the arrears this way, the government aims to promote the narrative that it has fully disbursed welfare pensions.

Liabilities

• A total of Rs 2,700 crore is needed to clear just the three pending welfare pension instalments. The government also owes around Rs 20,000 crore, including loans taken by the pension company (set up to manage pension distribution) and the interest accrued from various institutions. In addition, there is a pending incentive payment for cooperative employees (assigned to deliver pensions directly to homes), amounting to Rs 61.2 crore for nine months.
• Though the central government provides a nominal share toward welfare pensions, it is not being received consistently. Efforts to manage the rolling of funds by taking loans in the name of the pension company have also been obstructed by the central government. If loans are taken for pension distribution, the warning is that an equivalent amount will be deducted from the state's borrowing limits.

One in four voters receives a welfare pension

62 lakh people: Beneficiaries of welfare pensions

2.68 crore: Total number of voters

4:1: Ratio between voters and pension recipients

Rs 1,600: Monthly welfare pension per person

Rs 11,000 crore: Annual expenditure for welfare pensions

Rs 36,110 crore: Total amount spent by the current government so far