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Resource centre on India's rural distress
 
 

Direct cash subsidy to people would check corruption


Citing various irregularities in the implementation of Food for Work Scheme under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Bihar Chief Minister Nitish Kumar today strongly advocated cash subsidy as a better option.

''If people are to be helped through cash, it would avoid diversion of the commodity or any other product meant for them,'' Mr Kumar said in an informal interaction with Members of the Indian Women's Press Corps here.

The Bihar Chief Minister, who scored a second consecutive victory in the recent Assembly elections mainly on the plank of development, also debunked the argument that if cash was directly given to the people, they would be diverted to other uses than in buying food.

''I can't think of a hungry person going to buy anything else than satisfying his or her hunger first,'' he said.
Giving the example of the scheme in which his government gave cash to the families to buy cycle for school going girls, he said the scheme was a 92 per cent success.

''To my mind the massive corruption in the implementation of various schemes would end if cash subsidy was directly given,'' asserted the Bihar Chief Minister.

He felt that just MGNREGA, even if implemented fully, was not adequate, as much more needed to be done to ensure food security to the people.

Mr Kumar also expressed concern over the delay in the proposed food security law. In this connection he contested the number of BPL families (65 lakh) as given by the Centre, and said a survey conducted by his government had shown that the such families numbered 1.40 Crore.