Eat cash, be merry

PM puts emphasis on cash transfer scheme at a time when the country is still not IT ready

shivangi-narayan

Shivangi Narayan | November 27, 2012



On Monday, newspapers reported a seven-eight month delay in the National Optical Fibre Network Project, a Rs 20,000-crore project to connect the panchayats with high speed broadband (read story). In effect, this means execution of the scheme becomes a question of logistics if nothing else.

The same day, Prime minister Manmohan Singh held the first meeting of the national committee on the direct cash transfers. At the conclusion of the meeting, PM announced that the direct cash transfer of subsidies will come into effect in January 2013 in 51 districts and will cover 18 states by April 2013 and will link 42 government schemes.

In his concluding address PM said that the government spends a lot of money every year on direct benefits of people in the areas of scholarships, pensions and healthcare. Above it, it spends Rs 3 lakh crore on subsidies also meant for the poor. This money, he said needs to reach the right people if they have to make the right impact. Direct cash transfer will enable the government in distributing these subsidies without any leakage and wastage along the way.

Singh said that the direct cash transfer, which in turn is the way to provide the poor with what is rightfully theirs, will now be a reality thanks to technology and spread of banking services across the country.

He said that to make this dream a reality, India will have to deliver on both its fronts of Aadhar and Financial inclusion and make sure that every last person in India is covered under Aadhar and is able to open his bank account with the help of the 12 digit number.

The prime minister reiterated that the Aadhar number should be available to people on demand.

He urged the individual ministries to digitise their databases and seed them with Aadhar numbers. He said that the states will be helped by the Unique Identification authority of India (UIDAI) and Ministry of IT in their endeavours.

The direct cash transfer comes at a time when the government has to do everything it can to make sure it sails through in the general elections in 2014. The timing of the announcement could not have been perfect.

The scheme is ambitious to say the least as it involves setting up huge IT infrastructure in the country, needs to cover citizens, at least those in the pilot districts, under Aadhar and also provide broadband connectivity so that all these establishments talk to each other to provide smooth and seamless execution of the scheme. Also, cash transfers will never measure up against material subsidies unless adjusted for inflation, a clause that has neither been discussed nor announced. 

Comments

 

Other News

How social media is reshaping elections

Since Brazil’s return to direct presidential elections in 1985, no candidate who finished second in the first round of polling had ever won the presidency. Luiz Inácio Lula da Silva, now 81, has just done it. What explains the comeback, and what changed in Brazilian politics to make it possi

Cabinet approves Dearness Allowance, Dearness Relief

The union cabinet chaired by prime minister Narendra Modi on Wednesday approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2026 representing an increase of 3% over the existing rates of 6

Cyclone Arnab strikes Andhra as warming oceans amplify storm risks

Cyclone Arnab made landfall along the Andhra Pradesh and Yanam coasts in the early hours of Wednesday as a very severe cyclonic storm, with maximum sustained wind speeds of 125–135 kmph and gusts reaching 150 kmph. Its rapid intensification has raised concerns about how warmer oceans, global warmin

Counting matters but which ones?

The first instinct of public policy is to count. Its harder task is to count what counts. We have become remarkably good at measuring the reach of the welfare state vis-à-vis beneficiaries covered, rupees transferred, houses built, connections installed and services delivered. But some of the most

Inching closer to a trade deal with America

The cooperation between India and the United States goes back quite a time. We need to relegate that era to the backburner when Pandit Jawaharlal Nehru visited US in the times of president Dwight Eisenhower and called the American let-off of 10 million dollars in defence aid to Pakistan as a “gun w

Manch vs Musk: Forty people and a foreign billionaire

About forty people walked the roundabout on Teen Murti Marg to the gate of Chanakyapuri police station, a distance you could cover in under a minute, on Friday to protest against Elon Musk’s Starlink. The walk was called by the Swadeshi Jagaran Manch. Nobody joined them on the way, and nobody seeme

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter