In the interim Budget 2019, to be announced on February 1, the government is likely to allocate higher funds for National Social Assistance Program (NSAP), a pension scheme that was introduced to provide financial assistance to the elderly, widows and persons with disabilities, people aware of the discussions told CNBC-TV18.

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"Government is looking at ways to increase cash benefits for schemes which already exist, NSAP is one such scheme where increase in cash transfer can be done. NSAP contribution is solely from central government but some states also provide top up. Any increase in NSAP benefit to an individual will also push states to increase its share," said a source, who did not want to be named.

Allocation under NSAP is Rs 9,975 crore for financial year (FY) 2019 while it was Rs 8,744.57 crore for FY18. However, NSAP allocations seem minuscule when compared to the Rs 1.12 lakh crore allocated to rural development ministry in FY19.

Apart from NSAP, rural schemes like MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) PMGAY (Pradhan Mantri Gramin Awaas Yojana) and PMGSAY (Pradhan Mantri Gram Sadak Yojana) are also likely to see usual increase in fund allocation.

Among the key expectations this year from the Budget are tax sops and a farm relief package that has been widely discussed for a while.

Ahead of the 2019 general elections, the BJP-led government as well as the Congress-led opposition have promised big push to alleviate poverty, help farmers among others.

On January 28, in a surprising move, Congress president Rahul Gandhi said that his party will bring Minimum Income Guarantee for all poor if it is voted to power.

Earlier, the Modi government announced 10-percent reservation in government jobs and education to economically backward section in the general category, which was passed by both the houses.

According to the sources, the government is also likely to highlight the rural development measures taken to reduce poverty in India. Some of the highlights include building 44.53 lakh rural houses till FY18 against the 10.53 lakh in FY14, rise in rural road construction under PMGSY at 134 kms per day against the pace of road construction at 73 kms per day in FY14, increase in rural connectivity to 90.48 percent in FY18 versus 56 percent in FY14, the sources added.

The government is also expected to highlight a Brookings report released in December, 2018, indicating a drop in India's poverty rate to below 3 percent by the end of 2019.

First Published:Jan 31, 2019 7:47 AM IST