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Business News/ Money / Personal Finance/  Government pension not being reduced, Nirmala Sitharaman clarifies
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Government pension not being reduced, Nirmala Sitharaman clarifies

There has been rumours that the finance ministry has cut central government pensions by 20%
  • The finance ministry said there would be no cut in pension disbursements
  • Salaries and pensions will not be affected by government cash management instructions, the finance ministry said.Premium
    Salaries and pensions will not be affected by government cash management instructions, the finance ministry said.

    NEW DELHI : Amid reports that the central government has cut pensions by 20% to conserve cash during the Covid-19 lockdown, the finance ministry today clarified that all such news is false.

    "It is being reported that a 20% cut in Central Government Pensions is being planned. This news is false. There will be no cut in pension disbursements. It is clarified that salaries and pensions will not be affected by government cash management instructions," the finance ministry said on Twitter.

    The tweet came in response to a question by a social media user who said he has come across a central government circular showing 20% cut in pension disbursement on social media and TV channels. "A central govt circular showing 20% cut in pension disbursement is doing rounds in social media and TV channels creating panic among defence pensioners. Is the truth in it? Please clarify urgently," a social media user asked the finance minister.

    "Thanks for approaching seeking a clarification. There is no cut in pension," finance minister Nirmala Sitharaman said replying to his tweet.

    Later on, the Union Ministry of Personnel, Public Grievances and Pension also said many rumours are afloat that the government is contemplating a reduction or stoppage of pension which has become a source of worry for pensioners.

    "As clarified earlier, it is being reiterated that there is no such proposal for reduction of pension and no action is contemplated by the Government in this respect. Instead, the Government is committed for the welfare and well being of the pensioners," the ministry said in a statement.

    The government had earlier announced that senior citizens, differently-abled and widows, drawing central government pension, will get three-month advance pension in the first week of April under the National Social Assistance Program (NSAP) in the wake of coronavirus lockdown imposed all over the country.

    According to the NSAP, 200 per month is given to senior citizens from 60-79 years of age and 500 per month to 80 years and above. An amount of 300 per month is given to the widows in the age group of 40-79 years and 500 to 80 years and above.

    For the differently-abled, the pension is fixed at 300 per month up to 79 years of age and 500 for 80 years and above.

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    Published: 19 Apr 2020, 10:10 AM IST
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