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LATEST NEWS UPDATES | Budget 2012 reinforces UIDAI’s existence-Harsimran Julka

Budget 2012 reinforces UIDAI’s existence-Harsimran Julka

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published Published on Mar 16, 2012   modified Modified on Mar 16, 2012

Budget 2012 has further validated the existence of the Unique Identification Authority of India, whose identity was under question barely six months ago, by giving it more money and responsibilities to shape the government's technological interventions. The government has allocated the UIDAI Rs 1,758 crore from the Budget in 2012-13, a year-on-year increase of 47%, primarily to increase enrolments of Indians for unique IDs to 600 million, from 200 million. 

A string of announcements across the Budget highlight the central role this unique ID, called Aadhaar, will play in the delivery of welfare services: electronic-payment pilots in at least 50 districts; a computerised public distribution system (PDS) network; and payments of NREGA, old age, widow and disability pensions, and scholarships directly to the beneficiary accounts in select areas. 

"We have made it quite clear that Aadhaar will form the underlying platform for government services," Prime Minister Manmohan Singh told ET. Adds Ajai Chowdhary, chairman of HCL Infosystems, a UIDAI vendor: "Aadhaar will become important also for private companies who want to authenticate their employees and customers." 

The government wants to lower its expenditure on central subsidies to 1.75% of GDP by 2015-16, from an estimated 2% in 2012-13. This will be done partly by reducing the outgo on subsidies ad partly by better targeting. "We welcome the support given to us in Budget 2012-13," says UIDAI director general RS Sharma. "We will try and implement the existing projects in Aadhaar scheme which can benefit all." 

The greater allocation will mean more business for IT companies such as Wipro, TCS, HCL Infosystems, HP and Cisco, who are supplying hardware and software to the project. "The decision to increase investment in Aadhaar and leverage technology more in larger service-delivery initiatives will also provide impetus to the domestic IT sector," says Rajesh Janey, President, India & SAARC, EMC. Adds Naresh Wadhwa, president and country manager, India & SAARC, Cisco: "Leveraging technology to transfer subsidies directly to beneficiaries is definitely a positive step." 

The Economic Times, 16 March, 2012, http://economictimes.indiatimes.com/tech/software/budget-2012-reinforces-uidais-existence/articleshow/12294290.cms


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