PM fast-tracks direct cash transfer to poor

Prime minister Manmohan Singh on Friday constituted a three-tier system, involving 10 ministries, to kick-start an electronic cash transfer system to directly benefit the poor largely in the schemes such as NREGA, scholarships, pensions, health benefits and other income support programmes. The scheme also aims to improve targeting, reduce corruption, eliminate waste, control expenditure and also facilitate reforms.

A statement from the prime minister’s office (PMO) said the move was aimed at cutting down wastage, duplication and leakages and also enhancing efficiency. “The idea is to move to a completely electronic cash transfer system for the entire population,” the release said.

The ministries involved in the programme are finance, information technology, social justice, human resources development, minorities, labour, health, food, petroleum and natural gas, fertilizers, besides the planning commission and the unique identification authority.

A national committee under the prime minister, with 10 ministers and heads of planning commission and UIDAI, would would ensure coordination and decision-making at the highest level and impart the necessary urgency to the programme. A national executive committee of all secretaries concerned have been assigned to meet frequently to coordinate action, ensure adherence to time lines and sort out hitches in the programme as it is rolled out.

At the third tier is the implementation mission committees, to work on and finalise all operational and implementation details relating to the design and operation of the transfer system. “There is a lot work needed to have a smooth roll-out and has to be done in a mission mode with multiple agencies acting in a coordinated manner,” said the release.

The PMO release said with the rapid roll-out of Aadhaar, now covering 20 crore people and rapidly growing to 60 crore, and the National Population Register, it is possible to move to a system of transferring cash benefits directly to the poor.