New budgetary commitments in welfare sector to push expenditure requirements of U.T. govt by ₹350 crore

Puducherry government increases financial assistance, adding beneficiaries, pushing expenditure by ₹350 crore in next financial year.

The Puducherry government’s decision to enhance monthly financial assistance under certain welfare schemes and add more beneficiaries in new categories will push the expenditure requirements of the territorial administration by around ₹350 crore during the next financial year. 

The announcement made by Chief Minister N. Rangasamy in the Budget, presented early this week, to increase the monthly financial assistance given to women heads of family belonging to the Below Poverty Line Category from ₹1,000 to ₹2,500 and old age pension by ₹500 to all categories covered by the Women and Child Development department, is expected to push the expenditure commitments of the government in 2025-26.

The scheme, to provide ₹1, 000 as monthly assistance to women heads of BPL families in the age group of 21-55 years who are not covered under other welfare schemes, was announced by the Chief Minister in 2022-23 Budget. Around 57,000 women were currently enrolled in the scheme for availing the assistance for which the government had to spend ₹5 crore to ₹6 crore monthly, said an official. 

“The number of beneficiaries varies in most of the months as there will be additions and deletions based on the age criterion followed for the implementation of the scheme. With the government deciding to increase the monthly assistance from ₹1,000 to ₹2,500, the annual expenditure will become more than double. Our rough calculation is that the scheme alone will need an additional ₹110 crore annually, an official told The Hindu. 

The other Budgetary commitment to increase the old age monthly pension for all categories of beneficiaries by ₹500 will require an additional ₹120 crore. Currently, old-aged widows, destitutes, unmarried women and transgenders were receiving different amounts as monthly pension. The government estimates show that around 1.81 lakh people have been availing old age pension. In the current year, the expenditure incurred for old age pension scheme was around ₹522 crore, the official said.

Again, an additional expenditure running to crores would be needed to implement several other schemes, including special assistance of ₹1,000 per month for a period of three years to students who have completed Classes 6 to 12 in government schools and those who are pursuing their under-graduation courses in colleges. Then there is the proposal to extend Perunthalaivar Kamaraj Financial Assistance Scheme to other courses. There are also other financial assistance schemes targeting school students, the official said.

“Altogether, we will need around ₹350 crore more in the next financial year to implement the Budgetary commitments which will certainly warrant the government to consider additional revenue mobilisation without affecting the people. The Cabinet has already discussed ways to improve excise duty collection,” said another official.