States, like Centre, can now use Aadhaar for welfare schemes

Our Bureau New Delhi | Updated on July 24, 2019 Published on July 24, 2019

Cabinet clears amendments to Aadhaar Bill

States can now follow the Centre’s model for direct benefit transfer (DBT) using the Aadhaar number. The  Cabinet on Wednesday cleared  amendments to the Aadhaar and Other Laws (Amendment) Bill that  enable States to use the unique identity number  for their respective welfare schemes.

Bill to be moved

Information and Broadcasting Minister Prakash Javdekar, after a Cabinet meeting, told newspersons that Aadhaar is already being used by the Centre to implement its various welfare schemes. “Many  States have requested a legislative arrangement for the use of Aadhaar in their schemes, which has been accepted by the Centre,” he said,  adding that a Bill in this regard will  be moved  in  Parliament.

At present, the Centre uses Aadhaar-based DBT for 439 schemes  implemented by 55  ministries and departments. The  schemes can be categorised as Central Sector Schemes and Centrally Sponsored Schemes. While the former are  fully funded by the Centre and implemented by the Central government machinery, the  latter have contributions from the Centre and States in various proportions, and are implemented  by the State governments.

States and  Union Territories have their  exclusive schemes, too. For example, Tamil Nadu has 103 schemes while Andhra Pradesh has 125 and Karnataka, 168. Since States have to contribute their share for Centrally Sponsored Schemes apart from their own schemes, the use of DBT aims to cut  wastage and ensure  the effective use of resources.

DBT is heavily dependent on JAM — the trio of Jan Dhan Yojana (over 36.25 crore accounts), Aadhaar (nearly 128 crore holders) and mobile connections (about 116 crore users). The scheme,  initiated by the UPA government on a pilot basis on January 1, 2013, took off in November-December 2014, when all the districts in the country and key schemes were brought under its ambit.

The Centre claims  it has saved over ₹1.41-lakh crore through the use of DBT since its inception, out of which nearly ₹50,000 crore was saved in FY19 alone.

This seems to have prompted States to ask to use Aadhaar for their  welfare schemes as well.

Published on July 24, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.