In a significant move, the Rajasthan state government has introduced the Minimum Income Guarantee Act, becoming the first state in the country to do so.
Under this new law, pensioners will now receive twice-yearly increments to their pensions.
Come July, pensioners will see a 5% increase, and in January, they will receive an additional 10% hike.
This means a substantial 15% rise in pensions annually, proving beneficial for state government employees as well.
Pension Hikes in Two Installments
The state government has outlined a structured approach to pension increments.
Pensioners will witness a 5% rise in July and an added 10% in January each year.
However, it is essential to note that this increase will be granted after one year from the date of pension approval.
Enhanced Employment Opportunities
In addition to the Minimum Income Guarantee Act, the state government has implemented a provision for additional employment opportunities.
Pensioners will now have an extra 25 days of work under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), extending their work period to 125 days.
Advisory Board to Monitor the Act
To ensure the smooth functioning of the Minimum Income Guarantee Act, an advisory board has been established, headed by the Chief Secretary.
This board will oversee the scheme’s progress, with members from various departments, including Rural Development, Social Justice Empowerment, Planning, Finance, and Self-Government.
Government Faces Financial Burden
While the Minimum Income Guarantee Act is a significant step towards supporting pensioners, it comes with a financial burden for the state government.
The implementation of this scheme is expected to cost the government up to Rs 2500 crores, adding to its annual expenditure.
