direct cash transfer
Poverty elimination and inclusive growth are the top most priority for the welfare of every state. To meet these socio- developmental objectives, a number of
Government sponsored programs and schemes have been introduced. However, there have been issues associated with the efficiency and effectiveness of the same.
Rampant leakages and corruption have made many of the schemes and programs dysfunctional. Direct Cash Transfer to the poor has been aimed to mitigate these malaises. Need for Direct cash Transfer:
Recent studies by the Planning
Commission have shown that the Public
Distribution System has become so inefficient that 58% of the subsidized grains do not reach the targeted group and almost a third of it is siphoned off the supply chain. According to the Finance
Ministry the inefficiencies of the PDS ensure that the Government is forced to spend Rs.3.65 for transferring of Rs. 1 to the poor.
The idea behind the Direct Cash Transfer is to cut down wastage, duplication and leakages and also to enhance efficiency.
The idea is to move to a completely electronic cash transfer system for the entire population.
Launch of the programme
The programme is now called direct benefit transfer (DBT).
On January 01, 2013, the government of
India rolled out the DBT covering seven welfare schemes in 20 districts in 16 states. The programme covers schemes like educational scholarship for the Scheduled
Castes and the Scheduled Tribes and pensions to widows. Food, fertilisers, LPG, diesel and kerosene have been kept out for the present.
Among other objectives like better delivery, more accurate targeting, giving broader choice to the beneficiaries, reducing pilferage and corruption, the programme is also aimed at cutting the massive subsidy bill of Rs 1,64,000 crore .
India’s welfare spending is a major contributor to its fragile public finances.
The country’s budget deficit was 5.8 percent of gross domestic product in the
Government sponsored programs and schemes have been introduced. However, there have been issues associated with the efficiency and effectiveness of the same.
Rampant leakages and corruption have made many of the schemes and programs dysfunctional. Direct Cash Transfer to the poor has been aimed to mitigate these malaises. Need for Direct cash Transfer:
Recent studies by the Planning
Commission have shown that the Public
Distribution System has become so inefficient that 58% of the subsidized grains do not reach the targeted group and almost a third of it is siphoned off the supply chain. According to the Finance
Ministry the inefficiencies of the PDS ensure that the Government is forced to spend Rs.3.65 for transferring of Rs. 1 to the poor.
The idea behind the Direct Cash Transfer is to cut down wastage, duplication and leakages and also to enhance efficiency.
The idea is to move to a completely electronic cash transfer system for the entire population.
Launch of the programme
The programme is now called direct benefit transfer (DBT).
On January 01, 2013, the government of
India rolled out the DBT covering seven welfare schemes in 20 districts in 16 states. The programme covers schemes like educational scholarship for the Scheduled
Castes and the Scheduled Tribes and pensions to widows. Food, fertilisers, LPG, diesel and kerosene have been kept out for the present.
Among other objectives like better delivery, more accurate targeting, giving broader choice to the beneficiaries, reducing pilferage and corruption, the programme is also aimed at cutting the massive subsidy bill of Rs 1,64,000 crore .
India’s welfare spending is a major contributor to its fragile public finances.
The country’s budget deficit was 5.8 percent of gross domestic product in the