Beruflich Dokumente
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Public
Distribution
System vs.
Direct Cash
Transfer
Ayush Yadav 14HS20012
Ayush Yadav
Both PDS and Direct cash transfer are food security systems.
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Ayush Yadav
Major Challenges
Increasing number of the cases in which people are receiving bad quality
food grains in ration shops because corrupt dealers are replacing good
quality supplies received from the Food Corporation of India with bad quality
of food grains and are selling FCI stock in the black market.
Furthermore, fair price shop owners have been found to create large number
of bogus cards to sell food grains in the open market.
Identification of households for PDS services has been highly irregular and
faulty in various states because there are no set criterias as to which family
is BPL and which is APL. This confusion has given massive scope for
corruption and irregularities in PDS systems because those who are actually
meant to be benefitted are not able to take the benefits of PDS.
Indian Experience
Currently , 78 central government schemes are part of Direct Cash Transfer
although major focus is on account of transfer of subsidy on cooking gas
cylinders(PAHAL SCHEME) and NREGA transfers with the coverage estimated at
around 80 % and 74%, respectively. AICTE's fellowship schemes have over 99%
coverage and the number of beneficiaries are estimated at around 21,500. However,
there are several schemes in which Direct Cash Transfer remains on paper and
there is zero coverage as of now.
Direct cash transfer in the case of LPG subsidy had resulted in a 24 percent
reduction in the sale of subsidised LPG, as ghost beneficiaries had been excluded.
The savings to the government were to the tune of 12,700 crores in 2014-15.
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Ayush Yadav