Distribution of basic food grains and fuel at controlled prices every month through the Public Distribution System (PDS) could be the largest service provided by the Indian State, touching as it does over 65 million families through a network of nearly half a million retail shops. Given that the urban middle class has little stake in the health of the PDS, there have to be some compelling reasons for the...

Cash transfer as substitute for state service provision is a dangerous recipe for callously anti-poor and corrupt governance. THE staggering number of recent articles, papers and books on the virtues of giving cash in place of public services to the poor has created an impression that a sort of epidemic has broken out. Economists, policymakers, bureaucrats and newspaper commentators are all infected by it and are in turn infecting others. The central...

Prime minister Manmohan Singh has enlisted the Planning Commission's support to reconcile varying views on the proposed food security legislation . Singh has asked the commission to suggest the best possible framework for the Food Security Act after several members of the Sonia Gandhi-led National Advisory Council (NAC) objected to the suggestion of a government panel to restrict coverage of the ambitious scheme. The proposed legislation seeks to provide legal guarantee of...

An evaluation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the State has found several shortcomings in the implementation including corruption, inefficiency and lack of awareness about the programme. The draft of the evaluation, conducted by two researchers of the National Institute for Advanced Studies (NIAS) has found that while the rules stipulate that each worker entitled to get 100 days of employment under the scheme should have...

Given a positive regulatory environment, banks and other financial intermediaries will certainly be interested in using the smart card opportunity. Dr Arvind Virmani, with a Ph.D. from Harvard and 30 years of professional experience, is one of the most valued economists in the Government. Before he retired as Chief Economic Advisor in 2009, he had served in the Finance Ministry and the Planning Commission. A researcher par excellence, his research papers...