Cash transfers are now suggested by many as a silver bullet for addressing the problems that plague India’s anti-poverty programmes. This article argues instead for evidence-based policy and informed public debate to clarify the place, prospects and problems of cash transfers in India. By drawing on key empirical findings from academic and grey literature across the world an attempt is made to draw attention to three aspects of cash transfers...

With Mahatma Gandhi NREGA providing rich political dividends and letting  the government stay in course, the UPA-2 is stepping on the gas to multiply the mileage. On June 3, UPA chairperson Sonia Gandhi will launch the National Rural Livelihoods Mission, a massive self-empowerment programme for rural India with focus on women, from a tribal district in Rajasthan, Banswara. But unlike the NREGS providing sustenance to Rural India, the NRLM is to make...

The government is scurrying for an alternative to its plan on engaging private sector in providing urban amenities in rural areas. After a good initial response that saw more than 90 companies showing interest in the scheme - Provision of Urban Amenities in Rural Areas, or PURA, - the Rural Development Ministry has received only eight pilot proposals from six companies. Of the 45 shortlisted, most, including big players like Reliance...

The current perception that cash transfers can replace public provision of basic goods and services and become a catch-all solution for poverty reduction is false. Where cash transfers have helped to reduce poverty, they have added to public provision, not replaced it. For crucial items like food, direct provision protects poor consumers from rising prices and is part of a broader strategy to ensure domestic supply. Problems like targeting errors...

The draft Food Security Bill makes it compulsory for state governments to pay a food security allowance to targeted sections in case of failure to supply foodgrain through a sweeping welfare scheme targeted at nearly three-fourths of the population. The amount will be decided by the central government. The draft bill also presses for a radical overhaul of the food distribution system by giving incentives to independent agencies that procure...