Wide differences in State top-ups under NSAP have produced unequal social protection. Suggest a cooperative-federalism framework to address this.

The National Social Assistance Programme (NSAP) gives effect to Article 41 (DPSP). The Centre pays 100% of the base assistance so that it is uniform across India [1]. On top of this, States add between ₹50 and ₹5,700 a month [2]. As a result, how much an elderly or disabled person receives depends on where they live rather than on how much they need.

How the inequality arises

• The central floor has not been raised: the pension for ages 60–79 has stayed at ₹200. The 2014 Estimates Committee recommended raising it to ₹300 and linking it to inflation [3]. The 2026–31 continuation leaves the amount unchanged [1].
• Payouts follow State finances: States with more revenue add large top-ups. Poorer States, which often have more people below the poverty line, cannot match them.
• Fixed State caps: each State has a ceiling on the number of beneficiaries [2]. This leaves eligible people on waiting lists, even after the disability threshold was lowered to 40% [1].
• Delivery quality varies: CAG found that States did no door-to-door surveys and underpaid ₹61.71 crore to 92,602 beneficiaries [4].

Suggested cooperative-federalism framework

• A national floor linked to inflation: the Centre should raise the base amount and revise it each year, as the 2014 Committee recommended [3]. This sets a minimum that no State can fall below.
• Equalisation matching grants: the Centre should pay a larger share of the top-up in States with low fiscal capacity. The terms can be built into the rationalisation of Centrally Sponsored Schemes for each Finance Commission cycle.
• Caps based on demand: fixed ceilings should be replaced with caps revised using SECC data [3] and the number of disability certificates issued in each State.
• A joint Centre–State forum: a sub-group of the NITI Aayog Governing Council could agree on a minimum combined pension target and share best practices among States.
• Shared accountability: States should use the common DBT platform, which already carries about 94% of payments [2]. Social audits and incentives tied to results would address the gaps CAG found [4].

Indexed central floor → Need-based matching grant → Demand-based caps
                  ↘     Joint forum + DBT/social audit     ↙
                     Equal minimum protection across States

Figure: Layered cooperative-federalism model for NSAP

States would still decide how much to add, but the Centre would guarantee a minimum that is enough to live on. A framework based on matching grants and joint accountability would bring NSAP closer to Article 38's aim of reducing inequality and to SDG 1.3 on social protection floors. Every eligible citizen would get dignified support, whichever State they live in.