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LATEST NEWS UPDATES | Budget 2019: Pension Scheme for Unorganised Workers Is Yet Another Illusion -Sudhir Katiyar

Budget 2019: Pension Scheme for Unorganised Workers Is Yet Another Illusion -Sudhir Katiyar

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published Published on Feb 3, 2019   modified Modified on Feb 3, 2019
-TheWire.in

The new scheme, similar to other programmes launched by the Modi government, shows how divorced Lutyens Delhi is from the dust and grime of real India.

The NDA government in its last budget before the election has announced an ambitious pension scheme for unorganised sector workers.

Given its tendency for hyperbole, the scheme is already being touted as the largest pension scheme in the world with 100 million potential beneficiaries. It would do well to ponder the fate of the similar schemes that were launched in the very first year of the Narendra Modi government, much like the Shramev Jayate programme that was launched with much fanfare for this very category of workers.

Under the scheme, all the unorganised sector workers were to be issued social security cards (UWIN, or Unorganised Workers Identification Number cards). “The workers will be assigned a unique identity so as to give them social security benefits including health insurance and old age pension,” the business newspaper Mint reported in February 2015, i.e. four years ago. BJP ministers held fairs and collected thousands of forms that are mostly gathering dust.

The current scheme is likely to meet a similar fate.

The Atal Pension Yojna, with features very similar to the new scheme, was launched on May 9, 2015 – targeting this very sector with similar hyperbole. The scheme struggled from the very beginning. The scheme had a target of covering some 2.2 crore people by December 2015. However only about 6.5% of the target was achieved by due date.

Three years after its launch, the scheme had a subscriber base of 1.1 crore people – no doubt a substantial number by itself, but still a minuscule proportion of the vast mass of 41.6 crore workers estimated to form the workforce in the unorganised sector according to the 66th round of NSSO in 2011-12. It is a telling commentary on the polity of our time that in its rush for ‘ political surgical strikes’ before the upcoming elections, the government has launched a new scheme with more or less the same features that were the cause of  the failure of its previous scheme.

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TheWire.in, 2 February, 2019, https://thewire.in/labour/budget-2019-pension-scheme-unorganised-workers-mirage


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