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The performance of social pensions in India : the case of Rajasthan

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  • Dutta, Puja Vasudeva
  • O'Keefe, Philip
  • Rashid, Mansoora

Abstract

The Government of India has recently announced a dramatic expansion of social pension schemes both in terms of coverage and benefit levels. Yet relatively little is known about how these programs are administered or how well they achieve their objectives. This paper assesses the performance of a social pension scheme in the Indian state of Rajasthan. In particular, the authors review the experience with respect to program awareness, coverage, targeting, and leakage as well as delivery mechanisms. The overall assessment is positive and holds broader lessons for social assistance in India. Thus, transaction costs once pensions are sanctioned are low, disbursements are largely as per schedule, leakage in the form of shortfalls in benefits is generally low, and satisfaction levels with the social pension scheme are high. At the same time there are clear areas for improvement on both the policy and administration side. There is evidence of under coverage and high transaction costs associated with the application process. Though targeting is generally progressive, especially for old age and widow pensions though less so for disability pensions, targeting is far from perfect and the eligibility criteria are not strictly enforced. There is a strong case for relaxing, rationalizing, and clarifying some of the existing criteria. On the administration front, several basic issues relating to implementation need to be addressed, particularly with respect to transaction costs in the sanction of pensions, wide inter-district variations in performance within the state, and inadequate record-keeping and monitoring.

Suggested Citation

  • Dutta, Puja Vasudeva & O'Keefe, Philip & Rashid, Mansoora, 2008. "The performance of social pensions in India : the case of Rajasthan," Social Protection Discussion Papers and Notes 90347, The World Bank.
  • Handle: RePEc:wbk:hdnspu:90347
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    References listed on IDEAS

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    1. Sarmistha Pal & Robert Palacios, 2006. "Old Age Poverty In The Indian States:What Do The Household Data Tell Us?," Economics and Finance Discussion Papers 06-16, Economics and Finance Section, School of Social Sciences, Brunel University.
    2. repec:pri:rpdevs:deaton_paxson_poverty_children_paper is not listed on IDEAS
    3. Angus Deaton & Christina Paxson, 1997. "Poverty Among Children And The Elderly In Developing Countries," Working Papers 992, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    4. repec:pri:crcwel:wp98-09-deaton is not listed on IDEAS
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    Cited by:

    1. Kaushal, Neeraj, 2014. "How Public Pension affects Elderly Labor Supply and Well-being: Evidence from India," World Development, Elsevier, vol. 56(C), pages 214-225.
    2. Arpita Paul & Raj Kumar Verma, 2016. "Does Living Arrangement Affect Work Status, Morbidity, and Treatment Seeking of the Elderly Population? A Study of South Indian States," SAGE Open, , vol. 6(3), pages 21582440166, July.
    3. Asri, Viola, 2019. "Targeting of social transfers: Are India’s poor older people left behind?," World Development, Elsevier, vol. 115(C), pages 46-63.
    4. National Institute of Public Finance and Policy NIPFP, 2013. "A Cost-Benefit Analysis of Aadhaar," Working Papers id:5603, eSocialSciences.

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