The ageing of the population is a problem. Nobody will deny it. However, is it proper to look at it as an impediment to the economy that may result eventually in a crisis? Should we not accept it, rather, as a symbol of the progress of our health system? Otherwise, it is but an insult to our elders. A decrease in the number of deaths at birth, a control of epidemics and an increase in life expectancy have been achieved with suitable policies involving huge investments.

The analysis of the population database did notice the “problem” quite some time back. Now is the time for action. In the early sixties, the issue was overpopulation and the solution proposed was birth control. However, the industrial development of the seventies and the eighties further helped in the stabilisation of the population growth.

Is it really an appropriate technique to tackle the ageing population problem through budget proposals? A budget of a non-capitalist country like ours should follow as a general rule a philosophy of bringing relief to those affected by social problems. And these are many. In these circumstances, therefore, is it fair to harass people who have contributed to the development of the country?

Can a decrease in old age pension (OAP) solve the ageing population problem? It was rather understood that government is mainly trying to decrease its expenditure. Working out new conditions of service for those joining the labour force now and for those who still have twenty years to go before retiring with an apposite retirement pension would give sufficient time for solving the problem. It has been established that the effect of the ageing population will increase gradually and become more acute in twenty years.

In the 2004-2005 budget, it was proposed that those getting a retirement pension of more than Rs 20K would not be eligible for the old age pension. It was even announced that only 3,474 persons would be affected. This means a saving of about eighty million rupees annually.

It was made known subsequently that the decrease of the OAP would be on a pro-rata rate as from Rs 16K. The minister announced a third proposal on the radio lately that the decrease would start as from Rs 950 onwards. What is coming next to harass old age pensioners?

There are other interesting points that could emerge only after a thorough discussion on this issue. The decrease would start as from Rs 17, 333, which is really Rs 16K with the 13th month included. The question is why is it being announced that the last point is Rs 20K instead of Rs 21,667. Are advisers properly advising ministers?

Many points need to be analysed on the request that pensioners have to reveal the bank interests of their fixed deposit accounts. The first is that a person drawing a retirement pension of Rs15K monthly will receive a full pension. However, it is highly probable that many of these pensioners may have saved for a rainy day and have Rs200K or more as fixed deposits. At the present rate of 6% interest, these persons would get Rs 1K monthly as interest, which will give them a total income Rs16K and above. This means that their OAP would decrease as fromRs 950.

<B>Respect for elders</B>

These people would be better off when their bank accounts are transferred to their savings accounts. Or simply the transfer of their accounts on to those of their wives and/or children. If, however, they do not do either will it not be an additional annoyance to them when they have to effect a part withdrawal from their fixed deposit accounts during the course of the year. Their interest will decline and there must be a corresponding increase in their OAP. How long will it take for the refund of the increase on their OAP?Many pensioners spend their OAPs on donations. Others use it to pay a helper for the petty manual things they or their spouses can no longer carry out. Are advisers and ministers aware of these and other factors of our society?To conclude, it is most appropriate to quote Chintamanee Chummun from her poem ‘Progress’: “Youth, what respect do you have for your elders.”

<B>C. R. SAMBOO</B>