In a reformist move long recommended by various economists and panels, the government has set up a task force to create a way to directly transfer cash to the ultimate beneficiaries of various subsidy schemes, which are, at best, messy and, at worst, ineffective. The task force will be headed by Nandan Nilekani, chairman of the Unique Identification Authority of India. A pilot will be rolled out in the next four...

Over 2,000 activists of CPI (ML) Liberation gheraoed the Dasmantpur block office on Thursday demanding probe into irregularities in the execution of many developmental projects including the central employment scheme MGNREGA. The agitators took out a rally at the block headquarters before submitting a memorandum to the BDO. "Several poverty alleviation programmes have failed in the block due to the indifference of the officials concerned. People are unable to get...

As the murder of Malegaon additional collector Yashwant Sonawane, allegedly by the oil mafia, once again highlights the illegal diversion of public distribution system (PDS) Kerosene to the open market and industrial units, Punjab seems to have found its answer in Nandan Nilekani’s UID scheme, Adhaar. This March, as the state begins an enrollment drive to give its estimated 2.8 crore population a unique 12-digit identity, the number will also provide...

While monetary policy is an important element of the artillery against inflation — and with the 25 basis point hike, the RBI did part of what it was expected to do to tighten policy — there is the fiscal task too. As Raghuram Rajan, adviser to Prime Minister Manmohan Singh, points out, the Centre must control expenditure, cut subsidies and not start new spending programmes. Fiscal deficits are large and rising...

The government has a plan to reach welfare to the poor without wasting money. It wants to put hard cash in their hands instead of spending on welfare programmes. To begin with, it wants to end the public distribution system of food grain and give money directly to the people. Its logic: the new system of cash transfer will plug leakages and save an enormous amount of money. But is it...