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 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...

The Sheila Dikshit government is ready to shut PDS shops in Delhi, ringing the death knell for not only the poor but also the middle class because black marketers will have a free run said Arvind Kejriwal, civil society activist and founder of Parivartan. Instead, the government proposes that Rs 1,000 be deposited in the bank accounts of the women of BPL families for buying foodgrain. Even though PDS is not...

The first-ever comprehensive review of India's anti-poverty schemes has found that schemes like the MGNREGS that do not specifically seek to identify the poor are most successful in actually covering them. This is a significant finding given that many in the government have been arguing for the opposite — more rigorous external targeting — ahead of the 2011 BPL census. The World Bank on Wednesday released a review of centrally-sponsored social...

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...