Volume : IV, Issue : I, January - 2014

Direct Cash Transfer– A Boon For Aam Admi

Ms. Nazneen Shaikh, Ms. Riddhi Bhavsar

Abstract :

A milestone phase direct cash transfer scheme where the subvention amount will go directly into the bank accounts of the beneficiaries. It is a poverty reduction measure in which government subsidies and other benefits are given directly to the poor in cash rather than in the form of subsidies. As many Latin American countries have conditional cash transfer schemes in which money is transferred to poor folks through women. The money is given, subject to them confirming that their children attend school regularly, take preventive healthcare measures and provide better nutrition to their children and that’s absolute.

The paper contains ief view on the benefits of the schemes which government reach out to identify beneficiaries and can plug leakages. As currently, ration shop owners divert subsidized kerosene to open market and make fast buck. Such Leakages could stop. The scheme will also enhance efficiency of welfare schemes. Implementation of the scheme strategy where 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 programs will be made directly to beneficiaries.

As in India it has been started with Electronic Benefit Transfer (EBT) scheme begun on a pilot basis in Andhra Pradesh, Chhattisgarh, Punjab, Rajasthan, Tamil Nadu, West Bengal, Karnataka, Pondicherry and Sikkim. The government claims the results are encouraging, but the major drawback has been faced was Aadhar card holders will get cash transfer. As of today, only 21 crore of the 120 crore people have Aadhar cards. Two other drawbacks are that most BPL families don\'t have bank accounts and several villages don\'t have any bank anches. These factors can limit the reach of cash transfer.

While many studies have assessed positive impacts of such schemes, few have looked at their political benefits. A World Bank study recently reported there is a direct link between cash transfers and voting behavior. It was found beneficiaries express a stronger preference for the ruling party that implements and expands cash transfers.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

MS. NAZNEEN SHAIKH, MS. RIDDHI BHAVSAR Direct Cash Transfer- A Boon For Aam Admi Indian Journal of Applied Research, Vol.IV, Issue. I

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