This article documents and then examines the various benefits that, it is claimed, will flow from linking the Unique Identity number with the public distribution system and the National Rural Employment Guarantee Scheme. It filters the unfounded claims, which arise from a poor understanding of how the PDS and NREGS function, from the genuine ones. On the latter, there are several demanding conditions that need to be met in order...

People living below the poverty line will receive cash as subsidies and the process will start by March 2012, Finance Minister Pranab Mukherjee said in his general budget speech on Monday. "The government will move towards direct cash transfer to people living below poverty line in a phased manner," Mukherjee said in his budget presented to the Lok Sabha. A committee under Unique Identification Authority of India chairman Nandan Nilekani will be...

Cash transfers cannot and should not replace the public provision of essential goods and services, but rather supplement them. Cash transfers are the latest fad of the international development industry, as the preferred strategy for poverty reduction. And now Indian policymakers are busy catching up. The idea was mooted in the Government's Economic Survey for 2010-11, and the Finance Minister made an explicit announcement in his budget speech for replacing some...

Pranab Mukherjee, India’s finance minister, put the rural economy at the heart of a national budget on Monday, saying ridding the farm sector of crippling supply bottlenecks would be his “focus” in the coming fiscal year.A market-neutral budget supporting agriculture, Welfare schemes and the extension of banking services to more people was designed to dispel any sense that the Congress party-led government was in drift after a series of high...

The budget has allocated of total Rs160,887 crore, or 36.4% Plan allocation, to the social sector. The Bharat Nirman group of Welfare schemes has together been allocated Rs58,000 crore. The income of workers and helpers at anganwadis, or government-run day-care centres, has been doubled. The move is expected to benefit nearly 2.2 million people. However, it has not been replicated for voluntary accredited social health activists of the National Rural...