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...

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...

Renu Devi is scared. The Planning Commission’s new definition of poverty will eject her from the set of below-poverty-line households, and her family will lose the right to 25kg rice and wheat a month at Rs 5 per kilo. The plan panel has fixed a cut-off of Rs 675 and Rs 870 as the monthly per head expenditure, in rural and urban areas respectively, for a family to qualify as poor....

A 30-year survey of the poor gives a wake-up call POVERTY is becoming hereditary in India, at least for a sizeable population. That is the conclusion derived from a three-decade tracking of poor households in rural India. A survey by the Chronic Poverty Research Centre (CPRC), an international association of researchers and academicians, claims that those who are chronically poor may pass on poverty to their next generation. What’s more, people residing...

Media, especially the electronic one, has found a special mention in Planning Commission deputy chairman Montek Singh Ahluwalia's views on the 12th five-year Plan. But, his feedback hasn't been all that flattering. The electronic media has been hauled up for 'disproportionately' showing widening disparities between the rich and the poor. "The perception of concentration of wealth and widening disparities is sharpened by the tendency of the media, including especially the...