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...

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...

Cash transfers, the latest global development fashion, involve several risks in India, not least the risk of forgetting the need for continuing structural change. WHEN I was growing up, several decades ago, middle-class society in India was always a little delayed in catching on to Western fashions whether in music or dress or in other aspects. The past decades of globalisation seemed to have changed all that. Modern communications technology...

The National Rural Employment Guarantee Act (NREGA) completed five years this month. Pandurni village, in Nanded district in Maharashtra, is in high spirits. It has won the award for best performance in implementing the Rural Employment Guarantee Scheme for 2009-10. Around 1,500 people from this village are registered under this scheme, and over 800 have benefitted from it. Yahswant Suryavanshi is one of them. This owner of two hectares of agricultural land says...

This budget season, Finance Minister Pranab Mukherjee is stuck juggling multiple imperatives. Big social-sector schemes are soaking up money; yes, the economy is rebounding, but growth needs careful watching; the fiscal deficit is widening, feeding inflationary fears; and, as usual, every ministry wants more money. It doesn’t surprise much, therefore, that the finance ministry is looking for ways in which government expenditure can be managed better. One giant hole has...