Government Plans New Subsidy Scheme

BENGALURU: The Union Government will launch its new Pilot program, with which, the government has planned to put a part of every family’s Subsidiary in the Bank account of the elderly women of the family, as reported by the ET.
 

The primary intent of the program is to expand the direct cash transfer scheme, which is said to be done by the deducting a share of the subsidy that each family is being benefited by several government welfare schemes. In simple the program is proposed to provide basic income to the poor and let them decide on how to spend it. 

 Similar to that of Gas subsidy the Government has planned to put subsidy directly in beneficiary’s bank accounts to ensure no leakages as part of its programs. The beneficiaries may receive five percent cash of the overall benefits that have been provided by the government.

According to the Socio-Economic & Caste Census, India has 24.39 crore households and the Centre's subsidy budget for fiscal 2015-16 was Rs 2.43 lakh crore. So the calculation based on the above figures suggest that, every household in India might receive 800 per month and if  the program is designed only for the poor population of the country, then every poor house could get 2000 per month. 

 The Financial experts have apprehended the welfare program to be good, but were not sure on its successful implementation in ground level.  

DK Joshi, Principal Economist at Crisil said "An income support is really innovative as it would empower people to make a choice, however, how successful the initiative will be has to be seen because the same amount of money is being diverted and there is no additional financial support from the government."

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