Volume : IV, Issue : I, January - 2014

Cash Transfer Subsidy: A Wise Step

Prof. Dr. Baldev M. Patel

Abstract :

The government of India had implemented the scheme for cash transfer to the beneficiary\'s account in 51 districts from January 1, 2013. It is a poverty reduction measure in which government subsidies are given directly to the poor in cash rather than in the form of subsidies. It can help the government reach out to identified beneficiaries and can plug leakages.

Currently, ration shop owners divert subsidised Public Distribution System grains or kerosene to open market and make fast buck. Such Leakages could stop. The scheme will also enhance efficiency of welfare schemes. The money is directly transferred into bank accounts of beneficiaries. LPG and kerosene subsidies, pension payments, scholarships and employment guarantee scheme payments as well as benefits under other government welfare program will be made directly to beneficiaries. The money can then be used to buy services from the market. For e.g. if subsidy on LPG or kerosene is abolished and the government still wants to give the subsidy to the poor, the subsidy portion will be transferred as cash into the banks of the intended beneficiaries.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

PROF. (DR.) Baldev M. Patel Cash Transfer Subsidy: A Wise Step Indian Journal of Applied Research, Vol.IV, Issue. I

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