Budget 2009 brings some cheer to senior citizens who receive a pension—but only a small chunk of the nearly eight lakh group in Bangalore receive this benefit.
It is this 13% of senior citizens who stand to benefit from the proposed exemption on income tax announced by the finance minister from the New Pension Scheme Trust.
Dr Radha S Murthy, founder, Nightingales Home Health Services and Medical Trust, which looks after the needs of the aged, says, “There are a large number of people who do not fall within the tax bracket—these people have been left out in the cold. Last year, Rs16 crore was allocated for senior citizens, but there is no specific allocation for that group in this budget.”
Senior citizens comprise 10% of the city’s population and the number is fast growing. But they have little social security, and many of them fall dependent on their families for care and support. Often, they are financially dependent, and a meagre tax exemption offered to this group is hardly adequate. This is a group that incurs heavy medical expenses. There is need for housing facilities of some kind targeted at them as well. The security of a home will give them greater self-esteem, opines Dr Murthy.
Every item on the market shelves is getting pricier and in the long run these tax benefits won’t ensure that senior citizens are protected from spiralling prices: “For the urban senior citizen, there is really no benefit. Even though the deduction in respect of maintenance of dependents and severely disabled has been proposed to be raised to Rs1 lakh, this will only provide minimal relief,” says Dr Murthy.
Better living conditions, facilities and medical advancements are guaranteeing longevity. However, the rigidity of retiring at 60 leaves most of those who are able-bodied and yet forced to retire with diminished self-esteem, triggering illnesses, holds Dr Murthy, arguing that the government must consider raising the retirement age to 65.
The ministry could have considered dedicating a small part of allocation to the Jawaharlal Nehru National Urban Renewable Mission (JNNURM) for better facilities for senior citizens, argues Dr Murthy—the JNNURM’s budget was increased from Rs6,000 crore to Rs11,000 crore. Even 5% of that amount, dedicated to the aged, would make a huge difference, she says.
She feels this budget caters to the pensioned elite among the aged, ignoring a large chunk of senior citizens. The older people who receive no pension would thus be justified in asking, “What’s in it for us?”
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