Top government officials are already getting a policy blueprint ready for different sectors much ahead the upcoming term of the NDA government, led by PM Narendra Modi. If the NDA government gets elected in the upcoming Lok Sabha elections, it would be its third term in a row.
The detailed plan for the next term would include optimising ministries, expanding Indian missions abroad by 20 to 150, and boosting private investment in infrastructure. Additionally, there will be a focus on streamlining land acquisition for key projects.
A separate plan is being prepared to double the number of senior citizens receiving pension benefits to 50% by 2030 and increase women’s workforce participation to over 50%, a report in the Times of India said.
The action plan sets medium-term goals for 2030 and long-term objectives for 2047, outlining a roadmap for policy implementation. The government’s commitment to achieving these targets reflects a strategic approach towards governance and development.
At present the primary pension schemes run by the government include: National Pension System, Atal Pension Yojana, Pradhan Mantri Shram Yogi Maan-dhan, and Varishtha Pension Bima Yojana.
Here’s a quick look at the features of these schemes:
National Pension System
Under the aegies of ension Fund Regulatory and Development Authority (PFRDA), the National Pension System (NPS) is a retirement savings and investment programme that aims to offer secured income to workers as they age. It offers a convenient way to efficiently organise your long-term savings with a secure, regulated market-based return.
It is market-linked and managed by professional fund managers. Under NPS, individual savings are pooled into a pension fund which is invested by PFRDA-regulated professional fund managers into diversified portfolios comprising Government Bonds, Bills, Corporate Debentures, and Shares.
The NPS is one of the schemes that can avail exemptions under both tax regimes. Under the old tax regime, NPS offers tax benefits under three sections of the Income Tax Act, 1961. Under the new tax regime, a deduction under Section 80CCD (2) of the Income Tax Act by investing in NPS can be availed. This deduction from gross total income can be claimed if the employer makes a contribution to the NPS account on behalf of the employee.
Atal Pension Yojana
The Atal Pension Yojana (APY) aims at providing old age income security to all citizens, particularly to the people working in the unorganised sectors. Managed by the Pension Fund Regulatory and Development Authority (PFRDA), APY is a voluntary savings mechanism that encourages individuals to save for their retirement, ensuring they can face illnesses, accidents, or diseases in later life without financial worry.
Varishtha Pension Bima Yojana
Varishtha Pension Bima Yojana is a central-guaranteed pension scheme for elderly Indian citizens operated by the Life Insurance Corporation of India (LIC). As per the government, the VPBY scheme will provide subscribers a guaranteed rate of 9% per annum (payable monthly) on lump sum deposits.
The scheme is a government-backed pension programme designed to provide a stable income to Indians post-retirement, targeting primarily the unorganised sector. It guarantees a monthly pension ranging from Rs 1,000 to Rs 5,000, along with tax advantages.
Under Section 80CCD of the Income Tax Act 1961, contributions towards APY are tax-exempt, with a maximum exemption limit set at 10% of the individual’s gross income or Rs 150,000. An additional Rs 50,000 exemption is available under Section 80CCD (1B).
Pradhan Mantri Shram Yogi Maan-dhan
It is a voluntary and contributory pension scheme, under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension.