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Govt to switch to cash transfers to deal with an unwieldy subsidy bill -Siddharth & Surojit Gupta

-The Times of India The government is set to step up its push for cash transfer of subsidies and adopt it as a policy doctrine in the run-up to elections, with two pilot projects validating the assumption that it would lead to significant savings for the government while enhancing benefits for users. A pilot project for cooking gas in Mysore run by state-run oil companies saw the number of connections dropping 40%...

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True Progressivism

-The Economist A new form of radical centrist politics is needed to tackle inequality without hurting economic growth BY THE end of the 19th century, the first age of globalisation and a spate of new inventions had transformed the world economy. But the “Gilded Age” was also a famously unequal one, with America’s robber barons and Europe’s “Downton Abbey” classes amassing huge wealth: the concept of “conspicuous consumption” dates back to 1899....

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Sibal writes to Jaipal on LPG subsidy-Aarti Dhar

-The Hindu “If it is withdrawn, Centre will need to compensate States for increased cooking fuel cost” Unable to get an exemption for the cooking gas cylinders used for the Mid-Day Meal Scheme in the wake of a steep hike in the prices of domestic gas, Union Human Resource Minister Kapil Sibal has suggested that the Petroleum Ministry consider providing subsidised LPG cylinders for the current fiscal year. “It might be preferable at...

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Effort to save midday meals

-The Telegraph Union minister Kapil Sibal has promised measures to ensure that the Centre’s curbs on cooking-gas subsidy would not derail the midday meal scheme that serves eight crore children in 12 lakh elementary schools. The Telegraph had reported on Wednesday that self-help groups had stopped preparing midday meals in over 50 primary schools in North 24-Parganas since Monday saying they could not afford the cylinders’ new price. Chief minister Mamata Banerjee had...

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Prof. Farzana Afridi, Economics and Planning Unit, Indian Statistical Institute, New Delhi interviewed by Faisal Kidwai

Direct cash transfers or food coupons should be used by the government to provide services to the poor, says Farzana Afridi, Assistant Professor, Economics and Planning Unit, Indian Statistical Institute, New Delhi. Afridi, who obtained her PhD in economics from the University of Michigan, Ann Arbor, and an MA in economics from the Delhi School of Economics, says that although the Mid Day Meal Programme is having a substantial effect, the...

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