PM to implement cash transfer of subsidies
Posted on: 01:32 PM IST Nov 26, 2012
New Delhi: Facing several allegations of massive corruption, the Central Government is going to change the way in which subsidies are implemented. Prime Minister Manmohan Singh will on Monday announce a direct cash transfer scheme, which will initially be implemented in 51 districts of the country. The subsidy amount will go directly into the bank accounts of the people.
Union Finance Minister P Chidambaram said that the government will implement the cash transfer scheme to the beneficiary's account in 51 districts from January 1. The government aims to implement the scheme all over the country by the end of 2013. Chidambaram announced about the ambitious programme at Bancon. The 51 districts where the scheme will be initially implemented are spread over 15 states.
Chidambaram said that Prime Minister Manmohan Singh will chair the meeting of Cash Transfer Committee on Monday where he will review the preparation for implementing it. The Finance Minister said he wants to implement scheme by the ends of 2013.
The government wants to give cash subsidies for fertilizer, LPG, kerosene and under the Public Distribution System. The scheme's aim is to prevent irregularities in the expenditure on subsidies. Almost 3.5 per cent of the country's GDP is spent on the subsidies for schemes like petroleum products, fertilizer and food.
The Union Cabinet has already approved of transfer of cash subsidy for fertilizer. The government has planned for subsidies on the basis of Aadhaar identification number. Chidambaram said the government is planning to have a bank account for every family in the country.