Cash transfers - game changer for Cong led UPA: FM

Beneficiaries would receive their payments without undergoing any of the usual bottlenecks, he says

Old age pension reaching on time at the beneficiaries doorstep, student scholarships without hurdles of middlemen - the Congress party today announced the Congress led UPA government’s initiative to ensure that such benefits reach the ‘aam aadmi’ directly through a “transparent and efficient system” of “cash transfer”. Finance minister P Chidambaram along with Rural Development minister Jairam Ramesh, addressing the media at the Congress Party headquarters described it not just as a government initiative but as a “fulfillment of the Congress party’s 2009 election manifesto promise” and a sure shot “game changer.”

Admitting that food subsidy and fertilizer subsidy transfer were “more complex” issues and needed to be further deliberated before they could be transferred through Aadhaar-based individual Bank accounts, the FM announced that cash transfers initially would be rolled out in 51 districts on 1st January 2013 and by April would be unveiled across the country. Transfer of LPG subsidy is also in the pipeline, possibly before the crucial 2014 polls.

 

The FM later said that he hoped that this system of direct cash transfer would be as big a ‘game changer’ as the landmark Right to Information act and the Right to Education act had been for the UPA, predictably looking at elections 2014. The Congress is banking on this scheme due to the immediate benefits that are rendered directly to the ‘aam aadmi’ through its implementation. 

Yesterday, Prime Minister Manmohan Singh had at the first meeting of the National Committee on Direct Cash Transfers, cleared the timeline for implementation of this system through the Aadhaar-based platform across the country.
 
Stressing on the “revolutionary” way it would change people’s lives where beneficiaries would receive their payments without undergoing any of the usual bottlenecks, Chidambaram added, “It will eliminate cases of falsification and duplication and also bring in incalculable efficiency gains.” 

Elaborating on the “directness” of the system, Ramesh said that ‘Banking correspondents’ would be appointed who would directly take the money from the bank to the doorstep of the beneficiary. They would not necessarily be Bank appointees but would also be members of cooperatives, women Self Help Group members and even Aanganwaadi workers.

Dismissing Opposition and Left parties charges that it was a form of ‘bribe’ with elections on the anvil, Chidambaram said, “These are existing subsidies which are now being transferred inefficiently, we are just moving on to a more efficient system.” He added, “We have deliberately chosen those scheme which are amenable to transfer through bank accounts such as scholarships and pension. "If the Aadhaar penetration is 80 per cent and more, then it is a fair assumption that the beneficiary penetration of Aadhaar will be close to 95 per cent. We hope to be able to do that by December 31 ... The infrastructure is in place," he said.

The 29 schemes which will be roped in through this cash transfer system include 14 scholarship schemes of the Ministry of Social Justice, 6 scholarships of the HRD ministry, three from the Minority Affairs, two of the Women and Child Development ministry, 5 from labour ministry and one from the Health ministry.  

The Congress party is ensuring that ahead of the polls both in states and the 2014 general elections, the party derives maximum mileage out of this UPA poll plank scheme. Therefore the Pradesh Congress committee chiefs of the ten states where the scheme will be implemented across 51 districts, will be summoned to Delhi and will be attend a day long sensitization programme which will be addressed by Congress scion Rahul Gandhi who is also now heading the Election Coordination committee, as well as the FM Chidambaram.  

Jairam Ramesh summed it aptly when he said, “Its not just a government scheme, it’s a political mission for the UPA,” adding “Congress was not an NGO but a political party”.
But soon tried to dismiss the suggestion that it was another poll sop saying that “elections will come and go but this a major administrative change.”