The total expenditure on central schemes for the poor and on the major subsidies exceeds the states' share of central taxes. These schemes are chronic bad performers due to a culture of immunity in public administration and weakened local governments. Arguing that the poor should be trusted to use these resources better than the state, a radical redirection with substantial direct transfers to individuals and complementary decentralisation to local governments...

-Tehelka While Delhi government says it will eliminate leakages in the supply chain of food distribution, activists say it will take away the rights of the poor who require food entitlements rather than cash When Chief Minister of Delhi Sheila Dikshit fumbled a bit in front of 5,000 people while delivering her speech at the launch of Annshree Yojna, the audience let out a collective gasp and began murmuring loudly. Dikshit had...

-The Times of India Crest Cash transfers have been described as the world's favourite new anti-poverty device. As India gets set to implement it, TOI-Crest finds out if the politics will ever be divorced from the cash The UPA government's ambitious plan to introduce direct cash transfers (DCT) by January 1, 2013 reflects both the political desperation of a beleaguered government and the urgent need to reform India's inefficient and corrupt public...

-The Indian Express The UPA’s cash transfer scheme — delivering over Rs.3.2 lakh crore in subsidies and welfare programmes to the poor, directly to their bank accounts — has raised fears in many quarters about the capacity of a rickety state apparatus to cope with messy implementation issues. Our collective self-confidence about being able to implement any new policy is so low today, we seem to be paralysed by the mere...

-NDTV The Election Commission will decide today whether the government violated the rules by announcing a major overhaul of India's welfare system while Gujarat is in the midst of elections. The opposition BJP has complained that the announcement of the direct cash transfer scheme violates the model code of conduct, which kicks in as soon as elections are announced and forbids parties and candidates from sharing decisions or policies that could influence...