Some Arguments on Cash Transfer Schemes and Public Healthcare Services in India

The present study examines the impact and associated concerns of different types of cash transfer programmes. In addition, it analyses the significance of public healthcare services in India using the NSS – 75th round (2017-18) and the possibility of any trade-off between the provision of cash transfer schemes and the provision of services, particularly public healthcare services. It argues that cash transfers can positively affect major dimensions of a person’s life but only with sufficient public provisioning of key services. For instance, cash transfers can increase the utilisation of different healthcare services but would not be able to substantially improve health outcomes if there are shortages of quality healthcare services. If a greater provision of cash transfers results in a reduction in government expenditure on public healthcare services, there will be a high possibility of healthcare services not being available and affordable to all. In addition, due to a substantial information gap, there would be considerable under-consumption of these services. The paper argues that a possibility of a trade-off between cash transfer schemes and government provisioning of services such as healthcare exists in which people with lower income and greater vulnerability against diseases may suffer from both ends. Therefore, more cautious attempts should be made on how adequate amounts of both cash transfers and services can be provisioned together.