The Government of India has recentlyannounced a dramatic expansion of social pension schemesboth in terms of coverage and benefit levels. Yet relativelylittle is known about how these programs are administered orhow well they achieve their objectives. This paper assessesthe performance of a social pension scheme in the Indianstate of Rajasthan. In particular, the authors review theexperience with respect to program awareness, coverage,targeting, and leakage as well as delivery mechanisms. Theoverall assessment is positive and holds broader lessons forsocial assistance in India. Thus, transaction costs oncepensions are sanctioned are low, disbursements are largelyas per schedule, leakage in the form of shortfalls inbenefits is generally low, and satisfaction levels with thesocial pension scheme are high. At the same time there areclear areas for improvement on both the policy andadministration side. There is evidence of under coverage andhigh transaction costs associated with the applicationprocess. Though targeting is generally progressive,especially for old age and widow pensions though less so fordisability pensions, targeting is far from perfect and theeligibility criteria are not strictly enforced. There is astrong case for relaxing, rationalizing, and clarifying someof the existing criteria. On the administration front,several basic issues relating to implementation need to beaddressed, particularly with respect to transaction costs inthe sanction of pensions, wide inter-district variations inperformance within the state, and inadequate record-keepingand monitoring.
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