Is Cash transfer the right way to provide subsidies?
Aadhaar based cash transfers has been criticized on many fronts. Primal criticisms are fungibility of cash and self selection. Cash can be used for any purpose and might not necessarily translate into availing government subsidies. People will also have lesser incentive to opt themselves out of the subsidy system. Will it work effectively for a country like India is a matter of debate. Cash transfers have been highly successful in places like Mexico (Oportunidades) and Brazil. Can India replicate their successes? Meanwhile, without proper debate, the cash transfer through Aadhaar are about to kick start as soon as the coming New year. Something to reflect upon.
Cash transfers from January 1
Cash transfers in Brazil
Oportunidades- Conditional cash transfers in Mexico
Aadhaar based cash transfers has been criticized on many fronts. Primal criticisms are fungibility of cash and self selection. Cash can be used for any purpose and might not necessarily translate into availing government subsidies. People will also have lesser incentive to opt themselves out of the subsidy system. Will it work effectively for a country like India is a matter of debate. Cash transfers have been highly successful in places like Mexico (Oportunidades) and Brazil. Can India replicate their successes? Meanwhile, without proper debate, the cash transfer through Aadhaar are about to kick start as soon as the coming New year. Something to reflect upon.
Cash transfers from January 1
Cash transfers in Brazil
Oportunidades- Conditional cash transfers in Mexico
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