Direct Cash Transfer (DCT), now called Direct Benefits Transfer, is how direct? And why enable it with Aadhaar?
1. There are multiple layers traversed (agents) and transformations (cash to kind) between the cash originator (central or state or local government) and the final beneficiary, a BPL (Below the Poverty Line) recipient or a Special Category person (pensioner, war widow, veteran, scholar, unemployed person etc.) as defined and determined by appropriate authorities. Some subsidies have few intermediaries (government intermediaries or private parties) and in some subsidies there is no transformation (i.e. cash is delivered as cash and not in kind, viz. rationed wheat, kerosene, fertilizer etc.).
2. The best DCT is transmittal of cash from the point of first origin to final recipient without transformation, i.e. cash is delivered as cash and with little or no commission.
3. The less than the best DCT is one in which intermediate layers are reduced and transformations are reduced.
4. If what the UPA-II is implementing the best DCT, it is truly revolutionary. It is something that i thought will take ten years to do AFTER putting the DCT technology pipe in place. It is revolutionary because Govt has decided to do away with transformation of cash into kind. This means the recipient gets choices which can result in his or her going away from the point or product envisaged to another better product or supplier.
5. The DCT technology has been around for long, some countries have already made national level deployments, years ago. India will have no problems with the technology as the people in charge are knowledgeable, starting with Nandan Nilekani. The DCT pipe will, therefore, do its job without any loss or issue. Problems may occur due to the pipe connecting the wrong ends!
6. Aadhaar is useful because it ensures the recipient is the one who gets the benefits and not someone else. The result of this is that duplicates and fakes get eliminated. Thus total subsidy outflow will reduce and simultaneously, the total amount delivered to beneficiaries will increase. There is win-win at both ends of the DCT pipe enabled by Aadhaar.
1. There are multiple layers traversed (agents) and transformations (cash to kind) between the cash originator (central or state or local government) and the final beneficiary, a BPL (Below the Poverty Line) recipient or a Special Category person (pensioner, war widow, veteran, scholar, unemployed person etc.) as defined and determined by appropriate authorities. Some subsidies have few intermediaries (government intermediaries or private parties) and in some subsidies there is no transformation (i.e. cash is delivered as cash and not in kind, viz. rationed wheat, kerosene, fertilizer etc.).
2. The best DCT is transmittal of cash from the point of first origin to final recipient without transformation, i.e. cash is delivered as cash and with little or no commission.
3. The less than the best DCT is one in which intermediate layers are reduced and transformations are reduced.
4. If what the UPA-II is implementing the best DCT, it is truly revolutionary. It is something that i thought will take ten years to do AFTER putting the DCT technology pipe in place. It is revolutionary because Govt has decided to do away with transformation of cash into kind. This means the recipient gets choices which can result in his or her going away from the point or product envisaged to another better product or supplier.
5. The DCT technology has been around for long, some countries have already made national level deployments, years ago. India will have no problems with the technology as the people in charge are knowledgeable, starting with Nandan Nilekani. The DCT pipe will, therefore, do its job without any loss or issue. Problems may occur due to the pipe connecting the wrong ends!
6. Aadhaar is useful because it ensures the recipient is the one who gets the benefits and not someone else. The result of this is that duplicates and fakes get eliminated. Thus total subsidy outflow will reduce and simultaneously, the total amount delivered to beneficiaries will increase. There is win-win at both ends of the DCT pipe enabled by Aadhaar.
1 comment:
The Aadhaar project is itself so powerful that it has attracted so many people toward it and this is the reason why the response from the people of the country is exceeding the expected value of its regulatory body, the UIDAI. This is a good scheme and will surely curb the cases of corruption in the entire system. We should participate in these types of government programs as they all are beneficial to us at the end.
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