India moved a step closer to implementing cash transfers of direct subsidies and social welfare payments after a high-level panel presented the blueprint for effecting it through an Aadhaar-based payment gateway. Accepting the report, which details how all payments and cash transfers can be made electronically, finance minister Pranab Mukherjee indicated that it will be the key to plug leakages and ensure more targeted spending under the government’s social welfare programmes. The...

The Congress-led United Progressive Alliance (UPA) is likely to run into a debate on public health policy after the Planning Commission moved to nix a proposal to include healthcare in the list of public entitlements such as education and food. Central to the proposal—initiated by a high-level expert group (HLEG) headed by K. Srinath Reddy, a leading advocate of preventive cardiology and president of the Public Health Foundation of India—was the...

Conservation measures have taken away the traditional livelihoods of nomadic tribes in Karnataka. AT a short distance from the world famous monuments at Hampi is the village of Hulihaidar in the fertile region of the “rice bowl of Karnataka” in Gangavathi taluk in Koppal district. Local residents say it was an important town in the Vijayanagara empire (1336-1646 C.E.) and the seat of a local lord. Today it is home to...

The huge expenditure on the food bill, with the attendant leakages, could well make fiscal recovery impossible In the first part of this article, we have estimated the actual cost of implementing the food security bill in its current form. In this part, we now examine the fiscal sustainability of the same. The current state of the revenue and expenditure trends of the Central government (refer table) show that while revenue...

The irrationality and waste in energy subsidies in India has been a perennial theme in analysis of the Indian economy and in reform prescriptions. Progress has, however, turned out to be elusive in the face of ground realities and feasible politics.  The power ministry, after struggling for over a decade through repeated exhortations, had the satisfaction of getting a resolution in a Chief Ministers Conference in 2001 that free supply of...