TN objects to cash transfer scheme

The state has opposed the move to monetise and transfer in cash the subsidy element under PDS

The Tamil Nadu government has objected to the Centre's decision to implement the direct benefits transfer (DBT) scheme in the state.

In a letter to the Prime Minister on Monday, chief minister J Jayalalithaa said the Government of India had decided to operationalise the second phase of the scheme from June 1, 2013, while three districts -- Ariyalur, Pudukottai and Tiruchirappalli -- were proposed to be included in Phase I.

"I wish to convey my strong objections to certain aspects of the direct benefits transfer and the manner of its operationalisation since they are clearly intended to bypass democratically elected state governments," she stated.

The state has opposed the move to monetise and transfer in cash the subsidy element under the public distribution system. She said access to and timely availability of commodities - fertiliser, kerosene and LPG - was a critical concern and not just the quantum of subsidy.

The releases done directly by the Centre will result in divorcing authority from responsibility and accountability. This model also violates a basic tenet of sound administration, which is that authority, responsibility and accountability have to be fused together at the same level to ensure effectiveness and efficiency.

She also criticised the Union Planning Commission for not holding any consultations with the state governments in this regard.

"We also have a number of reservations about the scheme design of the 25 schemes currently identified for the Phase II roll-out.