Cash transfers are now suggested by many as a silver bullet for addressing the problems that plague India’s anti-poverty programmes. This article argues instead for evidence-based policy and informed public debate to clarify the place, prospects and problems of cash transfers in India. By drawing on key empirical findings from academic and grey literature across the world an attempt is made to draw attention to three aspects of cash transfers...

Conditional cash transfers” (CCTs) are a new buzzword in policy circles. The idea is simple: give poor people cash conditional on good behaviour such as sending children to school. This helps to score two goals in one shot: poor people get some income support, and at the same time, they take steps to lift themselves out of poverty. CCT enthusiasm, however, is often based on a superficial reading of the Latin...

India’s public distribution system has limited benefits due to huge leakage and wastage, World Bank said on Tuesday. It also recommended cash transfer as an alternative to provide subsidised food for the poor. “No country in the world has a well-functioning PDS system. India is no exception,” World Bank said in its report Social Protection for a changing India that was launched here Tuesday. “The public distribution system continues to absorb substantial...

The government is examining the possibility of turning its two important social sector programmes into universal schemes covering the unorganised sector in phases, taking a cue from the successful extension of a health insurance plan to 23 million poor families. The labour ministry will prepare a feasibility plan together with the rural and finance ministries that run the old age pension scheme for the below poverty line people and the Aam...

Government undecided on criteria to identify families below poverty line A survey by the Indian government in 2002 to determine households below poverty line (BPL) left out many poor families. Nearly a decade later, the Union Ministry of Rural Development (MORD) is trying to set the wrong right. But it is unable to decide on the criteria for identifying poor households. As a consequence, the BPL survey that was to...