Scheme for direct cash subsidy to be launched

Discussion in 'Politics & Society' started by Ray, Sep 29, 2012.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    Scheme for direct cash subsidy to be launched

    In a major initiative to check corruption and pilferage of subsidised items, the government is launching an ambitious scheme for direct electronic transfer of cash to beneficiaries that is expected to cover one quarter of households of the country.

    Prime Minister Manmohan Singh has set up an architecture comprising a ministerial committee under him besides a few other panels which would ensure time-bound implementation of the project leveraging the Aadhar scheme.

    Government spends a huge amount of Rs 3,25,000 crore annually on subsidies and the new scheme is intended to check corruption and pilferage of subsidised items including diesel, LPG and besides leakages in other schemes like MNREGA, pension and scholarships.

    "In a move to cut down wastage, duplication and leakages and enhance efficiency, the Prime Minister has given a major push to transfer individual benefits from the government directly into the bank accounts of beneficiaries," a PMO statement said.

    "This is to be done in fast-track, accelerated mode to be achieved in a time-bound manner. The idea is to move to a completely electronic cash transfer system for the entire population," it said about the scheme.

    The amount of cash to be transfered electronically to the beneficiaries is to be worked out.

    Against the backdrop of corruption and pilferage in various schemes, the government has been thinking about direct cash transfers to genuine beneficiaries to plug leakages as it is expected to bring down the subsidy burden.

    The issue of direct cash transfers was discussed at the meeting of the Planning Commission held earlier this month to finalise the 12th Plan as pilot projects have been successful in some states like Chhattisgarh, Andhra Pradesh, Karnataka, West Bengal, Tamil Nadu and Punjab

    Scheme for direct cash subsidy to be launched | Business Standard

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    If it works, it will be a great move in the right directions.
     
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  3. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    What I don't understand is, how will there be "bank transfers" to the rural underprivileged who are the real targets of such schemes? :confused:

    How many of them have bank accounts in the first place? How many of them have access to a bank?
     
  4. Ray

    Ray The Chairman Defence Professionals Moderator

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    The rural underprivileged have bank accounts since the get various loans.

    There is the NABARD (National Bank for Agriculture and Rural Development).

    Through the Rural Infrastructure Development Fund (RIDF) 12060.04 crores were disbursed during 2010-11. A cumulative amount of 121488.40 crore has been sanctioned for 444162 projects as on 31 March 2011 covering irrigation, rural roads and bridges, health and education, soil conservation, drinking water schemes, flood protection, forest management etc.

    • Under Watershed Development Fund which has a balance of 1847.69 crore as on 31 March 2011, 579 projects in districts of 14 states have benefited.

    • Farmers now enjoy hassle free access to credit and security through 1009.30 lakh Kisan Credit Cards that have been issued through a vast rural banking network. During 2010-11, 72.6 lakh KCC were issued by banks with a sanctioned limit of 43370 crore.

    • Under the Farmers' Club Programme, during the year 21903 clubs were launched, taking the total to 76708 clubs as on 31 March 2011 helping farmers get access to credit, technology and extension services.

    • Village Development Programme (VDP) is being implemented in 801 villages across 25 states.

    • Under Tribal Development Fund, cumulative sanction amounted to 917.60 crore for 317 projects covering 2.5 lakh families. During 2010-11 financial assistance of 373.97 crore was sanctioned for 126 projects benefiting 94,163 tribal families.

    • Under Farm Innovation and Promotion Fund (FIPF), cumulatively 123 projects in various states, involving financial support of 11.65 crore were sanctioned as on 31 March 2011.

    • Farmers Technology Transfer Fund (FTTF) – 512 innovative projects in 27 states with grant assistance of 44.97 crore were sanctioned during 2010-11.

    • There were more than 69.53 lakh savings linked SHGs and more than 48.51 lakh credit linked SHGs covering 9.7 crore poor households as on 31 March 2011, under the microfinance programme.
     
  5. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Those who do not have bank accounts will be asked to visit nearest Kirana shop, whose owner has a franchise of this scheme. Villager will show his Aadhar card, sign paper or authenticate himself with the registered mobile number and then the Kiranawala guy will pay him in cash.

    Nilkeni explained this scheme last year in an interview. I think they successfully ran pilot of this scheme somewhere in Chattisgarh.
     
  6. Tolaha

    Tolaha Senior Member Senior Member

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    From what I thought I knew about NABARD, it is not the type of bank that gives out bank accounts!
     
  7. sob

    sob Moderator Moderator

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    This has been the demand of a few smaller states like Chattisgarh and Delhi for some time now, but the central Government had been resisting it for some time now.

    However before implementing it at one go all over the country, GOI should run pilot schemes in states like Delhi, Goa, Kerala and then after extensive studies there should be a nation wide roll out.
     
  8. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    The direct-cash transfer will aid the booze lobby not the avg household
     
  9. VIP

    VIP Ultra Nationalist Senior Member

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    Now, they're bribing people for votes ?? That's ridiculous. Instead, they should provide the things directly not money, scholerships to rural people for education irrespective of caste or hire good teachers by giving them high pay scale as students are already getting free books,uniform,meal,etc.Giving away money could have been misused without proper background of people. This is the major difference between Garib Kalyan Mela and such online bribing.Govt must identify people who actually need support and willing to do things themselves. Providing money to unwilling people is just waste of money, MNREGA is the prime example.

If you provide LPG subsidy directly to people, how can you be so sure that they'll use costly LPG for cooking ??They can use alternative cheap materials like woodens.And Indians are masters in finding such loopholes.
     

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