Budget 2008-09, the last full Budget of the UPA government before the general elections next year is likely to offer a number of social sectors dollies. Top on the package plan list is a Rs 50,000-crore pension scheme for widows, disabled and old people below the poverty line (BPL). The proposed scheme ? Indira Gandhi National Social Assistance Programme ? , which is expected to cover 40 lakh widows above 18 years, 51 lakh disabled people and 77 lakh old people above 60 years of age living BPL, will offer a monthly payment of Rs 400.

According to sources, the finance ministry has given its in-principle approval for the proposed pension scheme which would be implemented in phases. It has also said that the present proposed allocation of Rs 17,700 crore would not be enough to fund the expanded pension scheme.

An additional Rs 28,000 crore would be required for the implementation of the proposed pension scheme.

The pension scheme has an in-built provision of Rs 4,200 crore for its implementation in 2008-09. The ministry has said that an additional Rs 800 crore would be required for proper operation of the scheme during the next fiscal. In the first phase, the scheme would cover people with multiple or critical disabilities which would cost around Rs 1,213 crore. Then the coverage would be extended to the widows at an estimated cost of Rs 950 crore. The scheme would cover the old people at its final stage at a cost of Rs 1,800 crore.

The government also planning to reduce cut-off age for BPL beneficiary under the pension scheme from present 65 years to 60 years.

With an eye on the general elections, the government has already launched the National Old Age Pension scheme to cover all persons above 65 years belonging to BPL. This would cost the government coffer Rs 3,768 crore per year.

The other pension scheme, Aam Aadmi Bima Yojana is expected to cover 70 lakh households of the 1.5 crore rural landless households in its first year of operation.

The scheme would provide for insurance of head of the family or an earning member of the family of rural landless household between the age of 18 to 59 years against natural death as well as accidental death and partial/permanent disability.