India has been experiencing a demographic transition in recent decades. Social security pension plays a crucial role in ensuring income security and the well-being of the elderly through periodic cash transfers. There is a significant variation across the states and questions of adequacy, coverage, and sustainability are of considerable policy relevance in pension funding by respective state governments. A comparison of the state-wise budgetary allocation and expenditure incurred under Indira Gandhi National Old Age Pension Scheme (IGNOPS) as per cent of GSDP, revealed out of 27 states, spending on old age pension scheme had remained less than 1% of GSDP with relatively larger share in spending among Bihar, Odisha, Tripura, Uttar Pradesh, and Jharkhand. Overall allocation has remained skewed due to frequent expenditure cutback measures, fluctuations on the year-to-year entitlement of funds despite an increase in the budgetary allocations made by both the central and state governments owing to an increase in the number of beneficiaries over time. While the policy advancement towards social security program is a welcome feature, the quantum of support extended under the scheme remained very low and coverage has remained small. Enhancing the quantum and coverage are associated with huge and growing fiscal costs and need adequate attention in the policy space to attain fiscal sustainability.