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Extraordinary recommendations of Economic Survey
Stunning recommendations in Economic Survey 2010-2011 1. PDS leakage Jha and Ramaswamy, using the NSS expenditure survey of 2004-05, report an overall diversion of 55 per cent of the grain meant for the poor. No matter where the exact figure lies between 40 and 55 per cent, the fact of the matter is the leakage that currently takes place is far too high. Once we give a legal guarantee to people about the food that they are to receive, if we try to deliver on this promise using our current delivery mechanism, we shall have to send twice the targeted amount of grain towards the targeted population. 2. Direct cash Transfer for Poor We may as a first step try this on one product, such as kerosene, by handing over the subsidy to the poor in the form of a smart card; and letting them buy kerosene from the market at market price. This will improve targeting and cut out corruption. It is true that the poor may misuse some of these subsidies on non-essentials, but it is surely better for
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