Subsidy schemes could delay direct cash transfer plan
While other cash payments like pension, scholarship, wage under rural job guarantee scheme can be transferred directly to the beneficiary’s bank account, it is difficult to integrate these major subsidies.
Going by the government assurances, direct cash transfer of subsidies on food, fertiliser and petroleum products will only become a reality in the second phase of the subsidy targeting programme, scheduled to begin in April next year. The government will roll out the targeted payment scheme for social welfare from January 1, which economists say is less beneficial to the cause of addressing the budget deficits considering the massive payments on three major subsidies. As per budget figures, food, fertiliser and petroleum account for 94% of the central government’s total subsidy outgo. That raises serious questions about the efficiency of the direct payment of subsidy under Aadhar the way it would be implemented from January 1.
Direct cash transfers related to the ministries of justice and empowerment, human resource development, minority affairs, women and child development, health and family and labour and employment will begin from January 1, 2013.
“Food is a controversial subject. There is no clarity on the food Bill. Even market availability is a problem in rural areas. As far as fertilisers are concerned,
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