The Union Government’s belated decision to establish an audit mechanism for projects undertaken under the Mahatma Gandhi National Rural Employment Guarantee Scheme has been motivated by a number of complaints regarding irregularities in the implementation of the programme. The Government should have taken the step much earlier, in fact soon after the scheme was introduced with much fanfare as the ruling United Progressive Alliance’s flagship social sector project. But at...

The government wants to make its rural jobs guarantee programme more open to scrutiny and empower its beneficiaries by getting panchayats (village councils) to periodically disclose information about the scheme’s functioning in that area. To this end, the ministry of rural development has issued an advisory to village panchayats, making it mandatory for them to convene regular gram sabhas (village general bodies). The initiative is also aimed at making the scheme...

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...

India's finance minister announced on Monday a food security bill for 2011/12, a measure that would provide cheap grains for millions of India's poor but which has sparked worries of a huge fiscal cost. It was one of the first signs of populism in the annual budget as Prime Minister Manmohan Singh confronted high prices and corruption scandals as well as elections in five states this year. In his ongoing budget speech,...

Poor allocation of funds to key social sectors shows the government’s lacklustre approach to inclusive growth. We are reaching the end of a remarkable fiscal year,” said the finance minister as he rose to present the Union Budget 2011-12. Agreeing with the government that the year gone by presented us with several opportunities and challenges to address critical concerns pertaining to the social sector, the overall sense is that this Budget,...