-PTI   Delhi may soon become the first city in the country to give cash instead of subsidized kerosene to BPL families, a move aimed at controlling widespread PILferage of the fuel. As per the proposal put forth by chief minister Sheila Dikshit, cash equivalent of the monthly kerosene subsidy will be directly transferred to the bank account of the female head of the family. A BPL family is likely to...

The current perception that cash transfers can replace public provision of basic goods and services and become a catch-all solution for poverty reduction is false. Where cash transfers have helped to reduce poverty, they have added to public provision, not replaced it. For crucial items like food, direct provision protects poor consumers from rising prices and is part of a broader strategy to ensure domestic supply. Problems like targeting errors...

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...

The government is scurrying for an alternative to its plan on engaging private sector in providing urban amenities in rural areas. After a good initial response that saw more than 90 companies showing interest in the scheme - Provision of Urban Amenities in Rural Areas, or PURA, - the Rural Development Ministry has received only eight PILot proposals from six companies. Of the 45 shortlisted, most, including big players like Reliance...

It would be sad if the potential of cash transfers was lost as a result of hasty posturing by those on various sides of the debate. The fact is that, in India today, poverty and economic insecurity remain endemic in spite of fantastic economic growth. The existing system has failed to arrest the growing number in poverty, despite substantial government spending ostensibly designed to reduce poverty. Could cash transfers help? A...