A World Bank review of India’s social sector programmes has suggested a smaller public Distribution system with more cash transfer, reworking of NREGA as a public works programme for urban areas and finally, a social security package including health care for those without regular employment. The report titled ‘Social Protection for a Changing India’, was commissioned by the Planning Commission. The bank said the three-pillar approach should be combined with social...

India’s public Distribution system has limited benefits due to huge leakage and wastage, World Bank said on Tuesday. It also recommended cash transfer as an alternative to provide subsidised food for the poor. “No country in the world has a well-functioning PDS system. India is no exception,” World Bank said in its report Social Protection for a changing India that was launched here Tuesday. “The public Distribution system continues to absorb substantial...

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,...

India spends more on programs for the poor than most developing countries, but it has failed to eradicate poverty because of widespread corruption and faulty government administration, the World Bank said Wednesday. “India is not getting the ‘bang for the rupee’ that its significant expenditure would seem to warrant, and the needs of important population groups remain only party addressed,” John D. Blomquist, lead economist at the World Bank, wrote in...

-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...