Indianomics, CNBC-TV18’s special show highlights the pros and cons of the direct cash transfer scheme with Pratap Keshari Deo, Food and Civil Supplies Minister in Odisha government, Kirit Parikh, economist and former Planning Commission member and Prof. Himanshu, economist from JNU.
The Prime Minister and trusted aids on November 26, announced the launch of Direct Cash Transfer Scheme, which proposes to transfer subsidy amount given away by various departments of the government for the poor and the deserving, directly to the bank accounts of beneficiaries.
Indianomics, CNBC-TV18's special show highlights the pros and cons of the scheme with Pratap Keshari Deo, Food and Civil Supplies Minister in Odisha government, Kirit Parikh, economist and former Planning Commission member and Prof. Himanshu, economist from JNU.
The scheme will be implemented from January 1, 2013 covering 51 districts across 16 states. The Congress termed the scheme as revolutionary and game-changer, while opposition and the Left have their own share of criticism.
Below is an edited transcript of the discussion on CNBC-TV18.
In 2009, Congress promised the food security bill, rice at Rs 3, wheat at Rs 2, that is no where to be seen today and we are on the threshold of the next general election. They are mixing the things at the center and are confusing the entire lot in the country.
Q: Are there any glitches in the 14 schemes where money is currently being transferred through the Aadhar scheme?
In case of school, girl child in class 9th and 10th is given a scholarship it is done through the school headmaster, DI and CI of the school or of the district. So, there is transparency there as it is being done through institutions. If you take them individually, malpractices come in.
In most of the state governments even in the poorest, for example in
The problem with the public service delivery system that lead to the identification issue is, eligibility, nobody is discussing that issue. This is because wrong beneficiaries have been given the eligibility cards and those who require these benefits are not eligible to get it simply because they don’t have the card. This issue is far more crucial, but the second issue, which is a particular programme for the introduction of Aadhaar, will damage the benefits of the poor if they don’t have the Aadhaar cards.
Even in the 51 districts, Unique Identification Authority of India (UIDAI) could not claim a 100 percent enrolment for Unique Identification (UID). It is less than 80 percent and the remaining 20 percent are likely to be the people from the vulnerable groups, who are suppose to be the beneficiaries.
I have been a supporter of distributing these subsidies through a smart card system long ago. As far as a question of not everybody having an Aadhaar card comes, we should think whether this new system is perfect or not. Dr. Himanshu’s study shows that 50 percent of the people below poverty line do not have the targeted Pubic Distribution System (PDS) cards.
If we have 80 percent with Aadhaar card, we have made an improvement over the previous schemes. So, any new system should not be considered super, excellent without any flaw whatsoever.
We should see how better it is than the existing schemes. From that point, there is not much new in it because the real scope for this would be to bring in food, fertiliser and fuel subsidy through Aadhaar card. So you can target it effectively and deliver it. Identifying poor is a huge issue and perhaps we should give up the whole idea of identifying the poor.
READ MORE ON Direct Cash Transfer Scheme , subsidy, Indianomics, Pratap Keshari Deo, Kirit Parikh, Prof. Himanshu, Aadhar, UIDAI, UID, PDS
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