The World Bank has backed a controversial proposal to replace foodgrain allotment under the public distribution system with a system of direct cash transfer. The bank, which supports social security schemes in India, today said poverty reduction had been low and overall returns on spending to eradicate poverty had “not reached their full potential”. It attributed the low reduction to “high leakage” in the PDS system and its weak implementation mechanism. Earlier,...

Blames FCI’s internal bureaucracy for resisting reforms Much to the dismay of several NGOs that want strengthening of the public distribution system (PDS) in India, the World Bank in its latest report has favoured cash transfers. “In the medium to long term, the report recommends offering households the option of a cash transfer while continuing food-based support for specific situations…,” the bank said in the report titled ‘Social Protection for a Changing...

Attempts by the Indian government to combat poverty are not working, according to the World Bank. The governing coalition spends billions of dollars - more than 2% of its gross domestic product - on helping the poor. But a new World Bank report says aid programmes are beset by corruption, bad administration and under-payments. As an example, the report cites grain: only 40% of grain handed out for the poor reaches its intended...

-News One   Though India’s social sector spending is higher than many other developing countries, one of its flagship welfare programs — the public distribution system (PDS) — is fraught with leakages, a World Bank report said Wednesday. The PDS scheme, which consumes around one percent of the country’s gross domestic product (GDP) and covers upto 25 percent of the poor households, has had limited success, as only 41 percent of the...

The Union Cabinet, which meets here on Thursday, will discuss a proposal to dovetail the promised caste census with the survey to identify those living below the poverty line (BPL), government sources told The Hindu. The entire exercise should be completed by the end of this year, these sources added. Dovetailing the two exercises will ensure that the castes enumerated can be correlated with the socio-economic data, and facilitate a more...