Kathmandu: In a major policy shift, the government has increased the minimum age for receiving the elderly allowance from 68 to 70 years, reversing an earlier populist decision made ahead of the 2022 elections.
Announcing the budget for Fiscal Year 2025/26 at the Joint Session of the Federal Parliament on Thursday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that only citizens aged 70 and above will now be eligible for the social security benefit.
The previous age threshold of 68 was introduced by the Sher Bahadur Deuba-led government as part of an election pledge. However, officials say the policy placed a heavy burden on state finances and was not sustainable in the long run.
The High-Level Commission on Economic Reforms had also recommended restoring the age limit to 70, arguing that such a move was necessary to ensure economic discipline and reduce fiscal pressure.
While the decision is likely to trigger political debate, it is being viewed as a sign that the government is willing to take tough measures to address long-term economic challenges.