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Mobile wallet company Paytm will now offer consumers the option of receiving 'digital gold' as cashback on their transacti
Digital transactions increased by about 23 times in March to nearly 64 lakh, with total value of Rs 2,425 crore, from last
Promoting cashless payments, Haryana Chief Minister Manohar Lal Khattar today used his mobile phone to pay for tea at a sh
Union Minister for Electronics and IT Ravi Shankar Prasad today said India saved about USD 6 billion (Rs 36,000 cror
Government today said that it has transferred Rs 7,024 crore as cash subsidies to LPG consumers since mid-November 2014 un
Prime Minister Narendra Modi today said the landmark scheme to give LPG consumers cash subsidy instead of selling t
Taking concerns of India and other developing countries on board, the G20 today vowed to take "strong practical"
In a major reform push, the government today deregulated diesel prices but hiked natural gas tariff by 46 per cent that wi
After the direct benefit transfer project, the Government is now planning to usher in a Direct-To-Home (DTH) scheme to pl
In the last six months, the Government has transferred over Rs 2,000 crore in the accounts of 40 million consumers under t
Rahul Gandhi's father had said that out of every rupee of government money spent in the name of poor and on development, only 15 paise reaches the intended target. Rahul Gandhi himself brought the figure down to 10 paise during his election campaigns. Leaving aside the developmental work, the same leakages are present in various anti-poverty programmes. Economists have often argued that instead of schemes that make leakages possible, direct cash transfers might actually be the best way to tackle poverty. Writing in the Indian Express, Bibek Debroy revisits the theme:
Studies by assorted economists show that if subsidies are replaced by direct cash transfers, there shouldn’t be any BPL (below poverty line) households left, an argument that becomes stronger if all anti-poverty expenditure is included, not just subsidies. The transfers are revenue neutral. They are also efficient because they don’t distort market prices. Technology now permits direct electronic transfers to bank accounts and all NREGA beneficiaries now have accounts with post offices or banks. This reduces administrative costs of delivery too, other than making subsidies transparent, more amendable to third-party and public scrutiny.
He goes on to list and counter the strange arguments that are trotted out in response whenever cash-transfers are mentioned and makes a strong case for identifying the non-poor if UPA II is serious about helping the poor:
The problem is elsewhere. Accepting cash transfers is equivalent to recognising the non-poor won’t receive subsidies. It requires pinning down the “aam aadmi”....
...With 300 crorepatis in the Lok Sabha, how about giving them MNICs [multi-purpose national identity cards] and accepting they are non-poor? If we are serious, we begin somewhere. And if we aren’t, we muddle along, with all the fiscal consequences
Read the full article: Who's The Aam Aadmi?