The total expenditure on central schemes for the poor and on the major subsidies exceeds the states' share of central taxes. These schemes are chronic bad performers due to a culture of immunity in public administration and weakened local governments. Arguing that the poor should be trusted to use these resources better than the state, a radical redirection with substantial direct transfers to individuals and complementary decentralisation to local governments...

-The Hindu The U.S. special supplement scheme for women, infants and children to prevent undernutrition is a model that India can learn from India’s economic growth over the last 15 years, and the growing size of the middle class, have become a source of attraction for international investors, especially in the retail food industry. However, the gap between the rich and the poor has only widened: nearly 40 per cent of the...

Direct cash transfers or Food Coupons should be used by the government to provide services to the poor, says Farzana Afridi, Assistant Professor, Economics and Planning Unit, Indian Statistical Institute, New Delhi. Afridi, who obtained her PhD in economics from the University of Michigan, Ann Arbor, and an MA in economics from the Delhi School of Economics, says that although the Mid Day Meal Programme is having a substantial effect, the...

-The Business Standard Financial inclusion in Madhya Pradesh helps the Centre's cash transfer projects It may not take a century for villages in India to get banks, and villagers to own accounts. Madhya Pradesh is paving the way for financial inclusion. The state is suddenly full of excitement about what it considers is a feat. Its rural development department has hired publicity agents to spread the word that every villager in the...

-The Business Standard The state govt is set to redefine public distribution system by linking it with insurance smart cards Several experiments are taking place across the country to make the public distribution system (PDS) free of leakages. Chhattisgarh that has led these is set to mark a new precedent with its PDS going smart in the next three months. The state government has reached an agreement with the labour ministry to...