State Reorganisation - Union's Commitment - Status Report

Security Pensions should be considered as an
on-going programme, usual and standardized.
Even if the enhanced amounts of pension are
treated as new and non-standardized, it should
be noted that the Union’s assistance to all
States is to the tune of Rs. 200 per month to
those below 80 years of age, and Rs. 300 per
month to those above 80 years of age. This
normal subsidy as applicable to all States
amounts to Rs. 946.90 Crore in case of Andhra
Pradesh. In addition, Andhra Pradesh spent Rs.
2,628.91 Crore towards Social Security
Pensions. Even assuming that only an
equivalent amount is taken as standardized
expenditure to qualify as Resource Gap to be
compensated by the Union, the matching
amount of Rs. 946.90 Crore should be funded
by the Union to fulfil its commitment to
compensate the Resource Gap arising in
2014-15.
Status Report - Union’s Commitment to Andhra Pradesh
However, Government of India calculated
entitlement at Rs. 93.34 Crore only for 2014-
15 (and Rs. 91.27 Crore dues of 2013-14 paid
in 2014-15). It is likely that there was an error
in calculation, and the normal subsidy for only
one month was taken into account by an
oversight. The minimal obligation of
Government of India would be to fund the
subsidy on Social Security Pensions as
applicable to all States as per norms and the
State’s minimum matching share of equilvalent
amount as part of the Resource Gap. In
addition, an amount of Rs. 91.27 Crore was
disbursed during 2014-15 towards the Social
Security Pensions due in the previous year
(2013-14). Thus the total Resource Gap that
should be funded by Government of India on
account of Social Security Pensions is shown
in Table 1.6:
Table 1.6 Total Resource Gap on account of Social Security Pensions
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