Assistant Professor, Post Graduate Department of Commerce & Management, D.A.V. College, Bathinda, India
Online published on 25 March, 2013.
In developing country like India distribution of subsidies to poor people remained a difficult and challenging task since independence. Government announced various schemes under which subsidies are given in form of subsidized food grains, kerosene, oil, medicine, books and cash. Subsidy distribution system remained one of the major reasons of corruption in the country. In subsidy distribution system nexuses between leaders-burro carats- babus looted maximum part of subsidies. Real beneficiaries get only 10 to 15% share in subsides so; there was need of hour to change that system of subsidy distribution system. New system of subsidy distribution is direct cash transfer of subsidies to beneficiaries through their bank accounts. According to new system subsidies will be given in cash to beneficiaries directly. This system has to aspects
cash payment of subsidies
payments should be directly paid to beneficiary so that middlemen ship should be reduced to maximum extent.
According to this new scheme government has announced Aadhaar cards (under UIDIA scheme headed by Mr. Nandan Nilekani) & bank accounts are required for getting subsidies. So subsidy amount will be directly transferred to beneficiary's account and their will be no leakage of funds. This scheme will work wonders if properly implemented because subsides will directly be received by beneficiaries. 85% to 90% leakage that is being major reason of corruption will be stopped. But, this scheme also not seems full proof, there is some problem. If thoseremained resolved than there will be no utility of implementing this scheme, rather it will cause of lose of million of Rupees spent by government on development of this scheme. This paper is concerned with those challenges.
