Direct cash transfer lacks direction: experts

Chennai:

Direct cash transfer is a good idea but the policy makers are ruining it with messed up implementation focusing more on means rather than on goal, according to experts.

Addressing a panel discussion on ‘Policy Dilemma – Cash transfer or transfer in kind’ former Madras School of Economics director Prof Paul P Appasamy said that the direct cash transfer scheme, which was launched to usher in transparency and cut down leakages, is a good scheme and it should not be politicized as being the United Progressive Alliance government scheme.

He said the scheme would be successful only if Unique Identification Number (UID) or Aadhar card and financial pre-requisites are in place. Interestingly, UPA is planning to introduce the scheme in 20 districts which he feels is being hastily implemented. First one should focus only on monetary benefits and see whether the system works. “Other subsidies can be gradually phased in after these systems are in place,” he added.

He also opposed direct subsidy under the public distribution system while advocating the need for food stamps or vouchers like that being introduced in the United States.

Prof Sudha Narayanan of Indira Gandhi Institute of Development Research said the design and implementation of direct cash transfer scheme is a tragedy.  She said the government’s focus is too much on means and not on goals for which the scheme is envisaged. Sudha said cash transfer work for some and not for others while giving out example from Brazil, Africa, United States, Mexico and other countries.

She said before implementing the scheme the government should ensure that a system is there to implement it. She also hit out at government’s haste to link cash transfers to Aadhaar.