Wednesday, November 28, 2012

Poll centric move

The scheme of direct cash transfer of subsidy amount into the bank accounts of those poor who deserve it on the basis of Adhaar Card identification to be introduced from January 1, 2013 is an election-centric move. The cash subsidy would be given to the beneficiaries having Aadhaar-enabled account number through the bank branches or banking correspondents. This may be described as politically motivated poll centric move to influence the people by Congress-led ruling UPA government but it will certainly do away with the middlemen. The total subsidy amount will go into the hands of the poor who deserve it. There would also be no chance of either falsification or duplication. The system of direct subsidy cash amount payment to the people may be the flagship programme of UPA at nearing the end of its second term to mobilize the people for votes to come to power for the third consecutive term but one thing needs to taken into consideration that when there will be cash payment, what will be about PDS system? PDS will become redundant and the government will have no need to store the grains to give to the poor through it. Government will also not make any purchase of grains from the farmers. All grain productions will be sold in open market and their price will be determined there. It is feared by a section of economists that the prices of food grains in the market will go up. The beneficiaries of direct cash payment will have no problem in purchasing the food items from the market at even at high rate with subsidy amount but the middle class people will have to bear the brunt as they purchase food items out of their own pocket sans any relief from the government. The entire population needs food grains. It is not only the poor but also the rich need food grains equally. That is why the Government needs to think how to keep the prices of food items in check. According to Finance minister P Chidambram, the benefits under 29 welfare schemes being operated by different ministries would be transferred through Aadhaar-enabled bank accounts in 51 districts spread over 16 states from 1st Jan next year. He says that the scheme of cash transfer into bank accounts would enable the government to extend benefits to the needy at the click of a button without any fear of misuse or duplication. At present, government operates about 42 schemes, of which 29 would be covered by the cash transfer scheme that is to be launched from 1st January 2013 in 51 districts. The schemes which would come under the purview of the cash transfer scheme would include those of Ministry of Social Justice and Empowerment, Human Resources Development (HRD) Minority Welfare, Women and Child Development, Health and Family and Labour and Employment. The government is so serious about introducing its poll centric cash transfer subsidy amount that Prime Minister Manmohan Singh has directed all the ministries concerned to work in close coordination to ensure success of the scheme.

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