Magic is creating an illusion. But the euphoric government calling its cash transfer scheme pure magic appears a delusion.

First pensions and scholarships given by various ministries were short-listed for cash transfers. But, now, the government wants to consider the public distribution system (PDS). This could be dangerous. Aside from the need to issue Aadhaar cards to every beneficiary, the cash transfer will demand a level of coordination among union and State-level departments not seen hitherto. Will, can, this happen?

Sure, considering the state of the PDS, the cash transfer scheme may appear pure magic but what of the pitfalls? The cash transfer scheme is predicated on easy accessibility to banks. Is this the case in Bharat, where the banking infrastructure is at best spread thin? People need to travel vast distances to a bank that are skeleton staffed. Will these ‘institutions’ be able to handle the deluge?

Assuming they do, will money in bank translate into food on plate? Warts and all, the PDS does supply food to the bottom-most rung. What will happen to the market for food items once they go off PDS is anybody’s guess. Traders will be free to release food items at their will and pleasure. Then, artificial shortages and rise in food prices. The set least able to fend for itself will have to face food price fluctuations. The government may answer saying it will set up a monitoring system. Then we know what happens. Corruption will take over.

Before it starts to wave its magic wand, the Government needs to take a closer, harder look at the cash transfer plan, especially vis-à-vis the PDS!

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