The direct cash transfer scheme to be implemented by the UPA government from 1 January, 2013 in select districts will not cover the Public Distribution System (PDS), the fertiliser subsidy and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Though an attempt has been made to give it the garb of ideological differences in the party on stalling the inclusion of these three major social sector issues, insiders point out that the concern of the leadership is to first address the grouse of the urban middle and lower classes, which have been most affected by ever spiraling rate of inflation and end of subsidy on LPG.
The cash transfer would also attempt to wean away the Schedule Caste (SC)/Schedule Tribe (ST) votes especially those who have had the benefit of education. The government has laid its emphasis on scholarships as it plans to cover about 1.2 crore SC/ST through pre-matriculation and post matriculation scholarships. The major scholarships will be doled out from ministries like social justice and empowerment which will have 14 schemes under it, ministry of human resource and development will have four schemes and tribal affairs ministry will have six scholarship schemes that will directly benefit from direct cash transfer.
While the government has shown interest in scholarship schemes, sources from the Prime Minister’s Office (PMO) say the reason for not going ahead with direct cash transfer in food is that the probability of diversion of money is high. ‘The government will lose control over food security also. The women will no longer be in charge of the scheme and this will lead to mis-utilisation of funds,’ said a PMO official. The problem cited in fertiliser subsidy is that the cash will not be transferred to the land tiller, instead the direct beneficiary will be the land owner who will avail the benefits of cash transfer.
While the government rode to back to power in 2009 because of MGNREGA, the scheme not being included in direct cash transfer is attributed to the failure of post offices in disbursing the wages of MGNREGA workers. Sources say that this point was raised in the meeting and Minister of Communication and Information Technology Kapil Sibal cited the lack of grants as the reason for the problem. In the first phase itself, the government will spend about Rs 2.5 lakh crore on fifty one districts that have been chosen as the pilot districts. The government, apart from bringing in banking correspondents, will also deploy about two lakh micro ATMS all across the country for disbursal of cash in the various schemes.
The cash transfer would also attempt to wean away the Schedule Caste (SC)/Schedule Tribe (ST) votes especially those who have had the benefit of education. The government has laid its emphasis on scholarships as it plans to cover about 1.2 crore SC/ST through pre-matriculation and post matriculation scholarships. The major scholarships will be doled out from ministries like social justice and empowerment which will have 14 schemes under it, ministry of human resource and development will have four schemes and tribal affairs ministry will have six scholarship schemes that will directly benefit from direct cash transfer.
While the government has shown interest in scholarship schemes, sources from the Prime Minister’s Office (PMO) say the reason for not going ahead with direct cash transfer in food is that the probability of diversion of money is high. ‘The government will lose control over food security also. The women will no longer be in charge of the scheme and this will lead to mis-utilisation of funds,’ said a PMO official. The problem cited in fertiliser subsidy is that the cash will not be transferred to the land tiller, instead the direct beneficiary will be the land owner who will avail the benefits of cash transfer.
While the government rode to back to power in 2009 because of MGNREGA, the scheme not being included in direct cash transfer is attributed to the failure of post offices in disbursing the wages of MGNREGA workers. Sources say that this point was raised in the meeting and Minister of Communication and Information Technology Kapil Sibal cited the lack of grants as the reason for the problem. In the first phase itself, the government will spend about Rs 2.5 lakh crore on fifty one districts that have been chosen as the pilot districts. The government, apart from bringing in banking correspondents, will also deploy about two lakh micro ATMS all across the country for disbursal of cash in the various schemes.