[Eauz]

The government will spend almost 38 billion rupees on an expanded pension scheme for elderly poor in the fiscal year ending March 2009, the finance minister said on Monday adding it would not pressure the budget.

The plan to increase coverage of the pension scheme to 16 million people above 65 years from 8.7 million now is part of the series of welfare measures planned by the coalition government as it gears up for the elections scheduled in 2009.

Finance Minister Palaniappan Chidambaram said the annual cost of the expanded scheme would be 37.72 billion rupees ($960 million), and said it would not strain government finances.

"We will find the money to fund the scheme," he said at the announcement of the increased coverage.

Prime Minister Manmohan Singh said the new scheme covered all above the age of 65 years and living on subsistence income.

"The old age pension scheme need to be further extended to cover those above 60 years. We hope to do this in future," Singh said.

Earlier this year, the government raised a monthly pension payment to elderly poor to 200 rupees from 75 rupees, with state governments asked to make a matching contribution. This scheme would be merged into the expanded scheme announced on Monday.

In September, the government said it would spend 200 billion rupees to extend a rural job scheme to the entire country from April 2008.

Link

Creating a welfare-state is quite efficient and beneficial for the Indian society as it will attempt to raise the standard of living for the vast majority of its citizens. However, as with most issues involved with government spending, contradictions eventually show their true face. However, for the moment, from an objective perspective, this is quite beneficial for those poor citizens.

[unbalanced zealot]

I agree.

And this is an interesting trajectory for Indian politics.

I wonder if it's politically being led by altruistic ideology or by reasoning related to
practical management or by electoral factors ... or a combination of the three ?