Sunday, June 30, 2013

May this Direct Benefit Transfer (DBT) be a magic cure for corruption



A year ago, prime minister of India Manmohan Sing desperately commended there is no panacea to curb corruption. Now the time has come to prove that newly launched program DBT is a magic mechanism, now UPA bets on magic cure for corruption. Jawaharlal Nehru lamented only Rs.14 out 100 reaches the beneficiary and a Planning Commission report mentioned 2/3 of the spending is for executive action. Adding more vigor to democracy, this electronic payments system is going to save an estimated amount of Rs. One trillion a year, nearly 10% of the total payments flow between the government and households (McKinsey, 2010). The Aadhar enabled scheme to ensure transferring benefit/subsidy directly to the hands of beneficiary will definitely make a huge impetus. Various countries including Jamica, Philippines, Mexico, China, Indonesia, Chile, Turkey, South Africa, United Staes, and Brazil have been successfully implemented the DBT under Conditional Cash Transfer (CCT). The ‘Bolsa Familia Program (BFP) in Brazil is one among the most successful initiatives.
While moving with the program, we need to tackle myriad issues in Information Communication and Technology (ICT). It is a fact that more than 50% Indians still abide in rural dwellings and technology and banking services are not near dream for these poor and illiterate people. Before implementing such revolutionary programs government focus should be on the empowerment of grass root people that incorporates accessibility banking service, financial literacy and inclusion, and related awareness programs. There is no doubt that when the whole project would be made functional with an inclusive approach, the fundamental objectives of the DBT will be surely accomplished.
Paul V Mathew

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