NEW DELHI: National Advisory Council chairperson Sonia Gandhi has agreed to discuss the cash transfer scheme at a meeting of the UPA's think tank after some members raised concerns about its efficacy and consequences for other social security schemes run by the government, especially the National Food Security Bill.
The scheme is likely to be deliberated upon at the next meeting of the council on February 26. It will also be attended by Nandan Nilekani, chairman of the Unique Identification Authority of India, who is expected to provide an update and explain the scheme, which Congress wants to be its big-ticket offer for the 2014 general elections.
Concerns have arisen within the party, the government as well as the council over implementation of the scheme as well as the consequences of replacing food and other subsidy schemes with cash benefits using Aadhaar cards.
After initial trumpeting by Congress of the programme as a 'game changer', rollout of the cash transfer scheme was hit by confusion within the administration, logistical impediments and delays, forcing the government to scale down the phased process. The key group of ministers handling the project shrunk the targeted districts in the first phase from 51 to 20, alongside pruning the number of schemes to be moved to the new platform.
Critics and civil society groups having the Congress leadership's ear have warned that instead of providing benefits, a hasty rollout targeting the general elections could end up causing problems to many beneficiaries due to the switch in delivery mode. They also warned against converting the government service deliveries to cash delivery.
The timing of putting major subsidy schemes like food, fertilizer, kerosene and LPG under the cash transfer platform also remain uncertain. Internal critics continued to warn that without these schemes and other conditions in place, the cash benefit programme would find it difficult to take off for lack of enough money flowing through the channels.
The government had to delay putting LPG supply on to the cash transfer platform in 20 districts.
NAC members are expected to be divided on the scheme but Nilekani could see some searching questions being asked, which the scheme managers in the party and government have so far avoided answering.
National Advisory Council to discuss cash transfer scheme
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National Advisory Council to discuss cash transfer scheme
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National Advisory Council to discuss cash transfer scheme
