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...

-Forbes India A look at the crucial issues involved Over the past three years, India has vigorously debated the merits of having a Unique Identity (UID) number for each citizen and, allied with it, the move towards direct cash transfers (DCT) of subsidies (like food, fuel and fertilizer) and social security endowments, like pensions and scholarships. On January 1, India took its first steps towards UID-enabled direct cash transfers. But the move has...

-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...

-The Hindu The technical glitches that plague cash transfers in Jharkhand may not have arisen with a simpler system that does not need Internet connectivity Pilot cash transfer projects taken up in Jharkhand for MGNREGA wages have achieved little success due to a variety of logistical, human and technological problems. A year after the launch of these projects, the problems remain unsolved. In Ramgarh district, a majority of the beneficiaries are in Dohakatu...

-The Economic Times On November 9, 2012, the government announced that from January 2013, 51 districts of the country would be subjected to Aadhaar- based direct cash transfers (DCT). We need some basic answers before we get to term the initiative as a game-changer. Aadhaar and the link with bank accounts: The Reserve Bank of India, initially having notified that Aadhaar number as valid for opening a bank account for know-your-customer norms,...