ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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All in the Name of the Poor

Who will be the real beneficiaries of the Direct Benefi t Transfer scheme?

Why is there little or practically no information in the 2013-14 budget on Prime Minister Manmohan Singh and Finance Minister P Chidambaram’s pet scheme to bring about direct cash transfer payments to eventually replace price subsidies for food, fuel and fertiliser products? Who are going to be the real beneficiaries of the direct cash transfers via Aadhaar-linked bank accounts using the unique identification (UID) platform?

Food will not immediately be replaced by direct cash transfers, but the ultimate objective is to do so, especially with the impending passage of the National Food Security Bill. The union cabinet has approved the draft legislation which is expected to be introduced in the current session of Parliament. An election promise of 2009, the bill has had few supporters in the United Progressive Alliance (UPA) government. If it is now being pushed through it is surely on account of electoral considerations with an eye to the next Lok Sabha elections. But the food subsidy budgeted for 2013-14 is only Rs 90,000 crore (compared to the revised figure of Rs 85,000 crore in the current financial year), though the finance minister has said he will provide Rs 10,000 crore more. This will still be grossly inadequate for any food security programme. The fertiliser subsidy, on its part, has actually come down quite significantly, from the actual figure of Rs 70,013 crore in 2011-12 to the budgeted Rs 65,971 crore in 2013-14. The revised petroleum subsidy was Rs 96,880 crore in 2012-13 (revised estimates) and has been put at a mere Rs 65,000 crore next year. Should we not see all these figures in the light of what is on the anvil?

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