Potential Game Changer: Direct Cash Transfers Set to Begin


Potential Game Changer: Direct Cash Transfers Set to Begin

New Delhi, Nov 25 (IANS): In preparation for the launch of the UPA government's direct cash transfer (DCT) of subsidies and welfare schemes to millions of people, Prime Minister Manmohan Singh will Monday hold the first meeting to roll out the ambitious project which it hopes would be a game changer for the government and the nation.

The subsidies and schemes are worth Rs.3.23 lakh crore ($65 billion) and the DCT is scheduled for launch Jan 1.

The DCT, a new system under which the beneficiaries receive cash directly in their bank accounts, is expected to enable delivery of the government's subsidies and welfare measures to the intended targets without pilferage.

The project will be launched about 15 months ahead of the 2014 general elections.

Manmohan Singh heads the national committee on DCT, set up in September, with 11 cabinet ministers, two ministers of state and others. The will coordinate action for the introduction of DCT to individuals.

The national committee's meeting comes 17 days after the executive committee for DCT -- headed by the prime minister's principal secretary Pulok Chatterji -- met Nov 9 and set the Jan 1 deadline for launching the project in 51 districts of the country.

The scheme will cover 18 states and union territories by April 2013 and it will be extended to 16 more states and union territories by April 2014, according to sources in the prime minister's office (PMO).

The DCT architecture, being anchored by the planning commission, involves departments of financial services, unique identity authority (Aadhaar), information technology, expenditure, posts, rural development, social justice and empowerment, tribal affairs, minority affairs, higher education, school education, health and family welfare, women and child development, labour and employment, petroleum and natural gas, fertilizers, and food and public distribution.

The executive committee, in its meeting Nov 9, had asked all the departments to send a list of schemes, road maps, and time lines for the DCT project to the planning commission and the PMO by Nov 20.

The ultimate aim of this move is "a completely electronic cash transfer system for the entire population", an official in the PMO said.

It was aimed to "cut down wastage, duplication and leakages and enhance efficiency" in the delivery of welfare schemes, as also to "improve targetting, reduce corruption, eliminate wastage, control expenditure and facilitate reforms".

"The new system is expected to benefit a quarter of India's households. It could mean several millions of people will be beneficiaries," the official said.

The government, the official said, could immediately roll out the cash transfer scheme for certain welfare schemes such as scholarships and pensions and unemployment allowance, as pilot projects had been executed in certain parts of the country, including in East Delhi.

The Unique Identity Authority of India (UIDAI), which is implementing the Aadhar scheme, has already enumerated around 200 million people from 2006 to now and has a target of reaching 600 million people within the next 18 months.

However, with regard to public distribution system and fuel subsidies, the cash transfer scheme would take more time to implement.

  

Top Stories

Comment on this article

  • Heri, Mangalore/UK

    Sun, Nov 25 2012

    A step in the right direction... But how efficiently will it be implemented? Only time will tell...!!

    DisAgree Agree [3] Reply Report Abuse

  • Ashok, Muscat

    Sun, Nov 25 2012

    This is a very Good move by the Government and it will be the Game Changer. First more people will enrol in UID card scheme and the people will directly benefit as the the Govt. AID receiver under various schemes will get the money directly to his or her account.

    DisAgree [1] Agree [4] Reply Report Abuse

  • tg, mangalore

    Sun, Nov 25 2012

    Hence its proved silent people does creative works.. MMS rocks.. You people made fun of him hez doing his job nicely..

    DisAgree [4] Agree [14] Reply Report Abuse

  • Sachidanand Shetty, Mundkur/Dubai

    Sun, Nov 25 2012

    We hope that this scheme will work efficiently to control the pilferage as claimed by UPA Government but how much time it will take to Transfer Direct Cash to beneficiaries? It means if a person purchase 6 Gas Cylinders in a year have to pay full market price of the Cylinders and later they will be given subsidies directly to their Bank Account, it means we put extra burden on Consumers to preserve the paid receipts & claim through proper channel whereby giving an opportunity to these channel to ask bribe to process their claim or may be Consumer will fed up and throw the receipts and curse the Government and go. OK money is safe in the hands of Government but subsidy scheme will not be implemented without harassing Consumers

    DisAgree [3] Agree [22] Reply Report Abuse

  • manoj, Jeddah

    Sun, Nov 25 2012

    Our ministers will not allow this to happen in India.Anyway good decision from UPA,election is coming they have to show something to people to win some seats in next election.

    DisAgree [1] Agree [38] Reply Report Abuse


Leave a Comment

Title: Potential Game Changer: Direct Cash Transfers Set to Begin



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.