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Government plans to introduce direct cash transfer for food subsidy in 6 UTs and ‘willing states’-Urmi A Goswami

-The Economic Times The government plans to introduce direct cash transfer for food subsidy in six Union Territories and 'willing states' for PDS scheme, taking a key step to plug leakages in welfare schemes. In the pilot project, expected to be rolled out from April, beneficiaries will receive the subsidy amount in their bank accounts, and will buy rice and wheat from the fair price shops. The fair price shops will sell...

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The Case for Direct Cash Transfers to the Poor-Arvind Subramanian, Devesh Kapur and Partha Mukhopadhyay

The total expenditure on central schemes for the poor and on the major subsidies exceeds the states' share of central taxes. These schemes are chronic bad performers due to a culture of immunity in public administration and weakened local governments. Arguing that the poor should be trusted to use these resources better than the state, a radical redirection with substantial direct transfers to individuals and complementary decentralisation to local governments...

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Is UID-linked cash transfer a good idea?-Sreelatha Menon

-The Business Standard Reetika Khera Professor, Indian Institute of Technology, Delhi* “Aadhaar is being made de facto compulsory for welfare schemes. With two-thirds without Aadhaar, they are bound to be denied entitlements” There are three components of the government’s direct benefit transfer scheme — computerisation, extending banking services and linking the benefits with Aadhaar. The real game-changers are the first two, whereas Aadhaar-enabled transfers carry the risk of excluding current beneficiaries. The Central government has...

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Cash Transfers and UID

-Economic and Political Weekly We support cash transfers such as old-age pensions, widow pensions, maternity entitlements and scholarships. However, we oppose the government’s plan for accelerated mass conversion of welfare schemes to Unique Identification Authority (UID)-driven cash transfers. This plan could cause havoc and massive social exclusion. We demand the following: (1) No replacement of food with cash under the public distribution system (PDS). (2) Immediate enactment of a comprehensive National Food Security...

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Scent of a scheme -Jayati Ghosh

-Frontline The Congress-led UPA seems to be betting heavily on the cash transfer scheme as a means to return to power in the next general elections. DECEMBER 2012 may go down in history as the month when the Congress party created its own “India Shining” moment: the moment when it started believing its own hype, and even deluded itself into thinking that its perception was so widely shared that it could provide...

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