Unfazed by the lack of response for the New Pension Scheme (NPS), the government has ruled out increasing budgetary support for the same. This year’s Budget has allocated a meagre Rs 10 crore to the scheme that hasn’t been able to make a flying start despite its several novelties like low fund management charge and portability factor.

“There are no plans to enhance the budgetary support or give any tax concessions on contributions made to this scheme. It was envisaged in a manner so as to limit the scheme from being dependant on government contribution,” officials in finance ministry told The Indian Express.

The scheme, which is the only vehicle for retirement planning for 87 per cent of the country’s population that works in the unorganised sector, is marred by lack of awareness. The pension regulator has spent just Rs 45 lakh on one advertisement campaign since its launch. Comparatively, other financial companies, like life insurers and mutual fund houses, spend crores every year to market their financial products.

Lack of intermediaries and no marketing of the scheme is one of the major impediments in the popularity of the scheme. Since its launch, the scheme has attracted just 1,109 subscribers and total assets of a little over Rs 1 crore.

Moreover, the government contributes 1.16 per cent in an individual’s account as their contribution for pension. The government has denied similar contribution amount in the case of NPS as well.

With no interest shown by the pension fund managers or the distribution partners in terms of marketing the product and lack of support from the government, NPS will have to evolve on its own.