Budget: Major portion of labour funds goes to pension scheme

New Delhi, February 1

The Union Budget proposes an allocation of about Rs 3,587 crore more than the preceding Budget for the Labour and Employment Ministry of which Employees Pension Scheme for Workers accounts for the lion’s share.

The total allocation is Rs 16,893.68 crore against Rs 13,306.50 crore in 2021-22. However, in the revised estimate for 2021-22, the allocation was increased to Rs 14,248.72 crore.

A perusal of segment-wise allocation in the Budget is generally defined by highest allocation of Rs 8,485 crore under the head of Employees Pension Scheme for Workers, which was Rs 7,364 crore in the previous Budget.

The scheme forms part of a cluster of Centrally-sponsored social security schemes for workers. Cumulatively, under the umbrella of the Central sector schemes for workers, the allocation is Rs 16,084.10 crore.

The underbelly of the allocation for the ministry, however, is that under the head of Establishment Expenditure of the Centre, it is Rs 619.18, an increase of Rs 68.68 crore in just one year.

In effect, the dark side is in the context of Union Government’s repeated calls to narrow down the Budget’s annual fiscal deficit with regard to the GDP.

Total outlay Rs16,893.68 cr

• The total allocation for Labour Ministry is Rs16,893.68 crore against Rs13,306.50 crore in 2021-22
• Allocation was revised to Rs14,248.72 crore last year
• Highest allocation of Rs8,485 crore goes to Employees Pension Scheme for Workers
• The same was Rs7,364 crore in the previous Budget