What is government planning to do with the Public Distribution System (PDS)? The answer lies in an old adage: Give a dog bad name and hang him! The common impression is that the PDS is not working because of pilferage and hence it is taken as a foregone conclusion that it needs to be replaced with cash transfer. Two empirical studies conducted recently, one of them by noted economists Jean Dreze...

-PTI   The centre is examining the proposed scheme for direct disbursement of food subsidies in cash, instead of foodgrains under the Targeted Public Distribution System (TPDS), as demanded by some states. The final contours of the scheme will be worked out in consultation with concerned agencies like the ministry of finance (department of expenditure) and planning commission, food and consumer affairs minister K. V. Thomas has said. The governments of Uttar Pradesh, Haryana...

-The Economic Times   An empowered group of ministers has in-principle agreed to give direct cash subsidy to the poor for kerosene, as recommended by a task force headed by Nandan Nilekani, but it will launch the scheme only after consulting the state governments. "We cannot finalise any programme on kerosene unless we discuss (it) with the state governments," oil minister Jaipal Reddy said. The EGoM on fuel, headed by finance minister Pranab...

DESPITE WHAT our reel-life heroes have shown us, perhaps it’s only possible to fight one villain at a time. Still, in his last few days on the job, Karnataka Lokayukta Santosh Hegde tried to battle two evils, with two reports that presented damning evidence of corruption in the BJP government. The first report, on illegal mining, had enough firepower to systematically dig holes in the state government. The second report,...

Proposes centralised PDS network, model PDS software for transparency. As the government works out the modalities for implementing direct transfer of subsidies on cooking gas, fertilisers and kerosene, a task force headed by Nandan Nilekani has proposed a three-stage model for direct transfer of food subsidy. The rollout of direct transfer of food subsidy will be contingent on a modern and computerised public distribution system (PDS), for which Nilekani has suggested a...