Parliamentary Panel Reviews PMVVY Subsidy Surge

Government subsidy costs for Pradhan Mantri Vaya Vandana Yojana rose sharply. The costs went from ₹27.58 crore in 2022-23 to ₹597.33 crore by 2025-26. A parliamentary committee led by Bhartruhari Mahtab noted this 20-fold increase in its 44th report, which it presented to Lok Sabha on August 12, 2026.

Funding and Future Changes

The problem is the gap between the 7.40 percent return promised to seniors and the actual earnings of Life Insurance Corporation of India. Officials said that money was tied up in lower-earning investments between 2020 and 2023, which left little room for change. Next, the committee asked Department of Financial Services to rethink fixed-return models. They suggest using floating-rate options or resetting rates based on government bond yields. This will protect the government budget from similar open-ended costs in future social security schemes.