In a reformist move long recommended by various economists and panels, the government has set up a task force to create a way to directly transfer cash to the ultimate beneficiaries of various subsidy schemes, which are, at best, messy and, at worst, ineffective. The task force will be headed by Nandan Nilekani, chairman of the Unique Identification Authority of India. A pilot will be rolled out in the next four...

The first issue in food security is India’s Hunger index. The Global Hunger Index released by International Food Policy Research Institute (IFPRI) places India 67th in rankings with a score of 24.1, far below China and below Sri Lanka, Pakistan and Nepal. According to FAO, about 25% of world’s undernourished live in India. The proposed Food Security Act is seen as the key instrument of intervention to remedy this situation. The...

IN A small village north-west of Bangalore, peasants queue for identities. Each man fills in a form with his name and rough date of birth, or gets someone who can read to do it for him. He places his fingertips on one scanner and stares at another. A photograph of his face is snapped. These images are uploaded to a computer. Within a few weeks he will have an identity...

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 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...