Get additional funds to implement SC order on higher provident fund pension: Panel to Centre

Source: The post is based on the article “Get additional funds to implement SC order on higher provident fund pension: Panel to Centre” published in The Hindu on 14th March 2023

What is the News?

The Parliamentary Standing Committee on Labour has pulled up the Union Labour Ministry for underutilisation of the allocations meant for the Ministry’s schemes.

What are the issues raised by the Parliamentary Standing Committee on Labour?

Firstly, it has asked the Ministry of Labour to assess and work out the likely financial implication of implementing the Supreme Court judgment on higher provident fund pension and approach the Ministry of Finance for additional funds to enable timely payment of amounts that may become due.

Secondly, there is gross underutilisation of schemes. For example, in the case of Pradhan Mantri Shram Yogi Maandhan, National Database of Unorganised Workers, Labour Welfare Schemes and Rehabilitation of Bonded Labour, the utilization recorded has been 26.66%, 30.02%, 30.63% and 48.30% respectively vis­à-vis the Budget provisioning.

– The panel observed that this gross underutilisation of the funds has impacted the performance of certain schemes thereby defeating the laudable intent of these schemes in benefiting the targeted groups.

– Hence, the panel has urged the Ministry to leverage their spending pattern on such schemes where the utilization percentage is not up to the mark.