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...

-The Times of India   Rural development minister Jairam Ramesh said states should invoke the penalty clause against government officials for not doing their work under the job scheme. Ramesh said rules should be framed to activate section 25 of MGNREGA, which seeks to impose penalty of up to Rs 1,000 on lax officials. He said the clause has remained dormant in most states. Reforms to make the job scheme effective have...

The Centre’s flagship welfare plan has failed to turn the tide on a key problem: rural migration. The disconcerting admission about the Mahatma Gandhi National Rural Employment Guarantee Act, or MNREGA, came in a paper released today by Union rural development minister Jairam Ramesh on the main challenges facing the programme and the reforms required. Checking distress migration is a key objective of the scheme, other than providing at least 100 days...

The government will recast the Mahatma Gandhi National Rural Employment Guarantee Scheme, to give it a welfare edge, following criticism that it was disconnected from people's concern over corruption, high food prices and inflation. The attempt will be to make it more responsive to people's needs and increase earnings of the rural poor. The reform attempts to make the scheme truly demand-based, besides addressing issues of fraud, misuse of funds, corruption...

The rural development ministry has proposed several changes in the rural job guarantee programme to ensure timely payment of wages and eradicate graft at a time when the Congress party-led ruling alliance has come under fire for poor governance and its failure to tackle corruption. The ministry has listed nine challenges to the proper functioning of the programme and proposed possible modifications in a note. The challenges include ensuring demand-driven legal...