The hype about the cash transfer scheme

Shiban Khaibri

Direct cash transfer scheme has been termed as “game changer” by two senior Union Ministers, P. Chidambaram, the Finance Minister and Jairam Ramesh, the Rural Development Minister in a press conference held in Congress headquarters, New Delhi at the end of the last month. The term “game changer” has connotations resting more at the intention rather than the purpose, when seen through the prism of one of the most important political events to unfold in 2014 in the country in the shape of the general elections, other things remaining the “same” in the form of the continued support to UPA2 by the SP and the BSP to rule out it to be preponed in 2013. If at all there is any game, then the scheme announced could have been at best called as “game plan” which would look to be in congruence with the aim as literally that would mean a strategy normally worked out in advance in politics, business or sports.

In the lighter vein, has our politics otherwise not largely turned into a business and a sport or both, as we see it now-a-days? UPA2’s main flagship plan is going to be cash transfer in addition to the expected as usual, doling out of gifts and sops, unheard of during the era of the premiership of Pandit Nehru, Shastri Ji and Smt. Indira Ji. Neither was then the coalition compulsion of Regional parties, nor were then farmers committing suicide in menacing numbers. Why has politics taken a plummeting dip now, must concern all those who value democracy and those of the mandarins in high positions having powers to take decisions. However, Jairam Ramesh has a different view in respect of the nomenclature and would prefer to call it as “Direct Benefit Transfer” (DBT) and feels it bad that the media calls even the Prime Minister’s committee as PM’s Committee on Direct Cash Transfers.

From the original 42 schemes, only 29 are going to be implemented and transferred into the accounts of the beneficiaries comprising subsidies on LPG and kerosene, scholarship schemes, pension schemes, etc; invoking the uses of the Aadhar scheme ( a 12 digital unique individual identification number ). The whole of the country is going to be covered by this scheme by the year 2014, the time of the general elections. What about food and fertilizers being left out which are the main benefits? Is there any policy antagonisms, ideological differences and operational difficulties in respect of these two vital items, the Government has not put forth any clarification.

Having tasted the fruits of Mahatma Gandhi National Rural Employment Guarantee Act (MANREGA), in the form of making it to New Delhi for the second term, UPA2 has now come out with the (electronic) cash transfer scheme expectedly to make a hat- trick. After touching the emotive feelings of the people by some of the famous election slogans like “Garibi Hatao” and in the name of “Aam Aadmi”, it plans to reach out to the voters with more apparent mouth watering slogan of “Your money in your “hand” “, albeit cash transfer scheme. It should have been “Your money in your pocket” but “hand” is instead used for obvious reasons. As per the Finance Minister, this scheme shall preempt any scope of corruption as also provide uninterrupted financial aid to people. Trying to make it look what it may not in reality, another senior Union Minister Kapil Sibal has certified that this was no direct or indirect violation of moral code (for elections), the Government has “only done its work”. Manish Tiwari, the (new) Information and Broadcasting Minister has said that “Congress has always believed that when money is equitably distributed, only then shall India become great.”

The two inferences associated with the scheme by these Union Ministers are “financial aid”, and “equitable distribution”. Both these tagged purposes are debatable as well as questionable. How long are people destined to remain financially weak in order to provide them the aid or call it subsidy since that reflects the failure of Government’s economic policies, welfare measures and the resultant social inequalities? How come can the cash transfer ensure equitable distribution to make India “great” is hard to comprehend? The question as to why such scheme was not introduced for the last eight years of UPA in office, when according to it, this new scheme would eliminate chances of corruption in the process of reaching the deserving, is very important especially in the light of the fact that the element of corruption in the system dawned upon it only now when the deciding year of 2014 is drawing near.? Jairam Ramesh goes to the extent of saying that the scheme has the potential to tackle graft better than Lokpal. It vindicates the stand of the main opposition including some regional parties too that it was with an eye on 2014 with aim to woo, rather unethically influence, the voter.

An anomaly worth noting is that states like UP, West Bengal, Bihar, Orissa, Assam and Chattisgarh are not covered under the scheme as they are not fully “Aadharised” .Even in UID states, it is believed that the Aadhar enrolment has reached only up to 80%. A criticism of the scheme is that the Government is making it out to be a Congress scheme rather than the Government’s (for the people). Jairam Ramesh , however, has been forthright in admitting that it is a political decision of the Congress leadership. It is also clear from the fact that in the proposed 51 districts of the country where the scheme is slated to be implemented, the district heads of the ruling Congress party are being kept in touch and “readiness” and to “impart” to them the knowledge, the nitty- gritty of the scheme. Shall this scheme prove successful in its objective is more important. Let us take the case of the implementation status in Rajasthan state. Delays in payments have been of full one year for instance in 25000 households of Kotkasim block of Alwar district. The plan to stop selling kerosene at subsidized rates and charge Rs.49.10 per litre resulted in the fall of kerosene sales by 70%. The residents could not afford to buy kerosene at non subsidized rates and suffered complaining of having received no money for a year. They had to resort to the conventional but virtually non available firewood for cooking and costly candles for lighting.

Much hype about the scheme is perhaps to detract the people’s attention from the two most avoidable failures of the Government, that of containing inflation and rooting out rampant corruption. A period of more than eight years to perform is more than sufficient. The process of identifying the needy is difficult exercise and needs a good administrative initiative. The availability of funds and timely transfer to the beneficiaries would be the touchstone of the efficacy of the scheme. Not disturbing the Public distribution system would be seen as Government not tampering with the system of adopted welfare measures. Once the scheme gets operative, it should not be wrecked from within by providing both subsidized things as well as cash by some politicians for getting votes. Critical appraisal apart, it is hoped that all the required seriousness is accorded to the scheme and not allowed to go the way of the much talked about the Food Security Plan which had the goal of giving the citizen the legal right not to remain hungry and to “live a life of dignity”.