How Indian government is prioritizing the

Ageing Population

The Economic survey 2018-19 released a day prior to the India Budget has dealt
the issue of ageing in India in detail. In its report “India’s Demography at 2040”,
the survey brings out the following observations:

 India is set to witness a sharp slowdown in population growth in the next

two decades. Although the country as a whole will enjoy the “demographic
dividend” phase, some states will start transitioning to an ageing society by
the 2030s.
 It is estimated that by 2041, the population would touch 151 crores, of
which about 24 crores would be 60 and above (~16%). Healthy life
expectancy at the age of 60 now stands at 12.9 years (12.5 years for males;
13.3 years for females), and it is lower than that of other major developed
and emerging economies
 At the other end of the age scale, policy makers need to prepare for ageing.
This will need investments in health care as well as a plan for increasing the
retirement age in a phased manner.
 The projected population and age-structure over the next two decades has
several implications for policy, inter-alia for the provision of health care,
provision of old-age care, provision of school facilities, access to retirement
related financial services, public pension funding, income tax revenues,
labour force and labour participation rates, and retirement age.

With this context, I was eager to understand the direction the Government is
planning to pursue via the policy reforms and allocations. The budget 2019-20
that was tabled on 5th July 2019 by the Hon’ble Finance Minister was a let down
and not much thought has gone in to address this key issue.

Not yet a Priority

To begin with, the budget speech had dedicated sections dealing with Youth,
Women “Naari Tu Narayani” apart from other sectoral discussions but does not
have a section or meaningful reference to “Seniors” clearly showing lack of
priority to this demographic issue staring at us not far away from now.
Considering the fact that the Economic Survey has dealt with this subject in detail,
one would have expected fair representation of the subject in the budget.

There is no mention of policy direction towards increasing the retirement age as

has been done in other countries which are moving towards aged population.
Establishment of dedicated rural geriatric care centers thru PPP model (there has
been an increased allocation towards National Health Mission, how this is utilised
remains to be seen) , incentivizing children & institutions in encouraging them to
obtain medical insurance cover to the aged parents, easing the reverse mortgage
norms to help ‘asset rich cash poor’ category of seniors embrace retirement
communities are some of the initiative that could have been made thru this
budget.

Impetus has been provided in this budget to both builders and buyers in the case
of Affordable housing. However, housing for seniors has not found mention
herein. It is high time that the Government promotes the retirement and senior
living facility concept (both stand alone or as integrated) considering the
increased demand, changes in social fabric and long gestation of these projects.

Tax Proposals_Hardship for seniors

While there are some marginal changes to the tax slab rates, some of the
provisions included through the budget amendments may cause hardship to
seniors unless clarified in the coming days. Filing of tax returns is made
mandatory for persons who has undertaken a foreign travel exceeding Rs.2 lacs
for himself or others. Many seniors with their children living abroad travel to
these places frequently, may not otherwise be obligated to file a return, because
of this provision may need to have the annual ritual of filing tax return included in
their list adding to the burden & anxiety. Further, the Government has proposed
to tax gifts made by persons resident in India to a person resident outside India as
income deemed to accrue or arise in India. Many seniors would now need to be
cautious of this provision & clarity required whether there would be exemptions
for gifts made within family.

Much to be done
Policy makers could have used this opportunity to make a beginning and prepare
for ageing. It is inevitable that sooner or later a larger blue-print need to be
prepared & it may be worthwhile to consider a dedicated ministry to deal with
Ageing. Industry bodies have a larger role to play and must support the
Government in addressing this phenomenon.

Elder Health Care Services in Bangalore at Kites Senior Care Contact us for more
details visit us-https://www.kitesseniorcare.com/contact-us

[The author is Co-founder & Chief Executive of KITES Senior Care, a geriatrics &
senior care brand, based out of Bengaluru. He can be reached at
raj@kitesseniorcare.com]