Surjit Bhalla proposes that various welfare schemes in the central budget be done away with, resulting in a saving of around 300,000 crore Rs, which can then be sent as direct cash transfer to 200 million poor via post offices & Aadhar identification. This, according to Bhalla will result in doubling the income of these poor. I agree with Bhalla on scrapping the subsidies because of the corruption and diversion of funds in these schemes as well as the demise of work ethics in the rural areas. Direct cash transfer cannot still be done because we lack the infrastructure for the same. Aadhar is in shambles. It will take years to put together unique IDs, and then unique bank accounts linked to these IDs. The process of eliminating frauds in this scheme will have to be an ongoing effort. Banking correspondent model should be rolled out across the country and post office should be allowed to become a bank as well. Transfer of money through mobile phones should be made ubiquitous. Until these things are done, direct cash transfer will not work properly. Therefore, some amount of product subsidy should have to be maintained. The more I look at Tamil Nadus PDS, despite the problems in it, each state government should work on strengthening its own PDS to universal one. Why bother with BPL, APL etc.? I may not offer free rice as TN does, but will offer rice or wheat, millets, dhal, oil and a few other groceries at subsidised prices. I quite like the attempt by Karnataka to rope in private grocery retailers to supply the PDS packaged products at government prices. This is simply brilliant if managed properly. People can buy what is their due as per their PDS card with biometric, and buy anything more they want from the private grocery shop at the retail prices. Diesel subsidy should go. The current roadmap seems to be okay. MGNREGA should stop. I will go with Bhallas model. Invest the money saved in government schools or school vouchers or as subsidy to private, aided players to set up schools in poor districts, villages etc. Give the aid in the form of free long-lease on land, or teacher salaries or both partially.
Posted on: Wed, 11 Jun 2014 04:48:40 +0000
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