TN urges Centre to implement direct transfer of subsidy through State

Tamil Nadu Chief Minister Jayalalithaa has urged the Centre to implement the Direct Benefits Transfer Scheme through the State Government.

In a letter to the Prime Minister Manmohan Singh she expressed strong objection to the scheme in its present form.

The system as envisaged by the Centre will not be efficient, pose administrative challenges, duplicate State Government schemes while not offering as much benefit and bypass and infringe on the authority of the State Government, she said.

The scheme should not be implemented in Tamil Nadu in its present form, she said.

The Chief Minister expressed ‘strong objection’ to the proposal to implement the scheme in Ariyalur, Pudukottai and Tiruchi districts from July 1, 2013, as part of the first phase roll out of the scheme.

Tamil Nadu is particularly against cash transfer of the subsidy element in cases such as the public distribution system, fertiliser, kerosene and cooking gas where not just the subsidy amount but access and timely availability of commodities is critical.

Tamil Nadu has implemented such direct transfer of subsidies to beneficiaries’ bank accounts in schemes such as scholarships, maternity benefits, and social security pensions.

The Central Government should move to the system through the State Government, to make the roll out faster and more efficient. It will also enable the support to be extended seamlessly to other schemes like social security pension, she said.

The Union Planning Commission has issued instructions relating to the scheme “with virtually no consultation with the State Governments.”

The State Government also has reservations about the design of the 25 schemes identified for the Phase II roll-out. They are either pilot schemes or the amount of benefit “small and insignificant.”

The Centre should consult with the State Government and address its concerns before implementing the scheme, she said.

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