Kerala to pay 3rd instalment of unpaid welfare pensions in May, two remaining

Thiruvananthapuram: Finance Minister K N Balagopal on Thursday sanctioned the third of the five instalments of the social welfare pensions it had left unpaid during the 2023-24 fiscal year. The earlier two instalments were paid during the last fiscal, 2024-25. The final two instalments will be paid this fiscal.

The finance minister's office said that the arrears would be disbursed from the middle of next month. The April pension was disbursed before Vishu. So, in May, 62 lakh beneficiaries in Kerala would receive Rs 3,200 as welfare pension; the usual monthly pension of Rs 1,600 plus the arrear of Rs 1,600. Over Rs 1800 crore is required for the purpose, the minister's office said. 

The money will reach the bank accounts of 26.62 lakh beneficiaries. For the rest, it will reach their doorsteps through cooperative banks.

During the 2023-24 fiscal year, the LDF government had defaulted in the payment of social welfare pensions; it was left unpaid for five months. The CPM had identified this as one of the reasons for the party's huge defeat during the 2024 Lok Sabha polls. 

In July, in what was then seen as a rare instance of public apology, Chief Minister Pinarayi Vijayan read out a statement in the Assembly in which he admitted to the failure and promised to pay back the outstanding amount in five instalments. Nonetheless, the CM insisted that the arrears were not caused by the state government's policies but by the centre's determination to throttle Kerala's finances.

While Kerala grants monthly welfare pension of Rs 1,600 each to 62 lakh beneficiaries, the Centre's welfare support is only for 6.8 lakh beneficiaries, or less than 11% of the total, and this too a maximum of Rs 500.

There are five kinds of social welfare pensions in Kerala: Indira Gandhi National Old Age Pension, Indira Gandhi National Widow Pension, Indira Gandhi National Disability Pension, Pension for Unmarried Women above 50 years and Agriculture Labour Pension. In addition to these, there are 16 welfare board pensions.

The Centre extends support only to three of these: the National Old Age Pension, the National Old Age Pension, and the National Disability Pension.

For instance, Kerala pays Rs 1600 as old age pension till the age of 79. In this, the Centre's share is Rs 200. For pensioners above 80, the Centre's share is Rs 500. For handicapped and widow pensioners, the Centre's share is Rs 300 out of the total Rs 1,600.