The late Rajiv Gandhi famously, or infamously, once claimed that only 15 per cent of the funds allocated to welfare programmes ever reached the intended beneficiaries. The rest leaked enroute, entering the pockets of an assortment of intermediaries. This is a thought that the Union finance minister must always remember, especially when he sits down to allocate funds for an assortment of subsidies and some of the high-profile spending programme...

Even as the National Rural Employment Guarantee Act enters its sixth year, Bihar Chief Minister Nitish Kumar said in Delhi on Thursday that cash transfers were the answer to the eternal questions about inefficiencies in government schemes. He had tried out direct cash transfers in his effort to give Bihar’s girls bicycles, he said, and discovered that the programme had a “92 per cent success rate”. No programme, he said,...

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the United Progressive Alliance government’s flagship programme, has so far spent just 56 per cent of its Budget allocation of Rs 40,000 crore. It has also recorded a fall in the average number of workdays per household this financial year. Government managers are asking for a 60 per cent rise in allocation for the scheme in the next financial year. Rs 20,854...

The ministry of finance and the Planing Commission have finally agreed on increasing gross budgetary support by 18% for the terminal year of the Eleventh Five-Year Plan (2007-2012). GBS is the monetary assistance provided by the Centre to implement schemes in five-year plans. The ministry of finance will allocate around Rs4.41 lakh crore as part of the planned expenditure in the Budget for the next fiscal, compared with an allocation of Rs3.73...

The government has a plan to reach welfare to the poor without wasting money. It wants to put hard cash in their hands instead of spending on welfare programmes. To begin with, it wants to end the public distribution system of food grain and give money directly to the people. Its logic: the new system of cash transfer will plug leakages and save an enormous amount of money. But is it...