Says women tend to be more reliable when it comes to good use of money
PTI | January 9, 2013
Nobel prize winning economist James A Mirrlees on Tuesday said that providing direct cash transfers to the poor as opposed to subsidies would result in small leakages as experienced in other countries.
"The experience with US, Mexico and Brazil showed that the leakages are small in cash transfers provided to the poor by the government," Mirrlees told reporters on the sidelines of a seminar at the Indian Statistical Institute in Kolkata.
Mirrlees said that the Indian government was trying to manage the subsidies well by introducing direct cash transfers to the poor.
"I hope that this will work well as the leakages are quite small. Indirect transfer is more prone to leakages than direct transfer," the Scottish economist said.
Asked that whether there was a possibility that after getting the money at hand, the poor would have a tendency to spend it on unimportant items of consumption, Mirrlees said that in many countries the government was transferring the money directly to the hands of women.
"The women tend to be more reliable when it comes to good use of money," he said, expressing doubt whether such a system would work in India.
"I hope the people will act in the best interest," he said.
Asked whether such cash transfers would add to inflationary pressures in the economy, Mirrlees said that it depended on how the government was financing it.
"But it doesn't seem so," he said.
Mirrlees suggested imposition of 100 per cent marginal tax rate on low incomes.
"It is very difficult to apply taxes on low-income people in India. So far, leakages in the transfers to the poor are reasons for low marginal tax rates," he said.
The UPA government has decided to launch direct cash transfers as a pilot project in select districts across the country from January 1 this year.
On the issue of FDI on multi-brand retail, Mirrlees said that the small shopkeepers might face problems, but it would bring in more value-addition.
Before privatisation and corporatisation, the Indian Railways need to undertake major reforms including commercial accounting, decentralisation and human resource among others, said Bibek Debroy, economist and member, NITI Aayog at Railways Reforms and Governance Conclave organised by Governance Now on Fri
NTPC Ltd has raised Rs 2,000 crore through green masala bonds in overseas market under its $4 billion medium term note programme, union minister Piyush Goyal informed the Lok Sabha. The proceeds of these bonds will be used for financing renewable energy projects in accordance with applicable
It’s been over a month since the power centre in Tamil Nadu shifted from Poes Garden to Greenways Road in Chennai. The thirteenth chief minister of the state, Edappadi K Palanisami, is taking baby steps to bring about a change in the state which has been battling political uncertainty for the past fe
When her husband died last year, 60-year-old Chakkamma was not sure whether she would be able to have some money of her own: she has a son who looks after her, but she wanted to maintain a degree of independence. Opportunity came knocking when the Tamil Nadu government, as part of its Pudhu Vaazhvu (or new
Should Shiv Sena MP Ravindra Gaikwad be arrested for assaulting an Air India employee?
The Railways was unable to meet its operational cost of passenger and other coaching services. During 2014-15, there was a loss of Rs 33,821.70 crore on passenger and other coaching services. The freight services earned a profit of Rs 38,312.59 crore which indicated that 88.28 percent