Govt may take a relook at PDS
The government may redesign the Targeted Public Distribution System (TPDS), as 58% of subsidised grains under the scheme does not reach to the target group.
By TNN |
DELHI: The government may redesign the Targeted Public Distribution System (TPDS), as 58% of subsidised grains under the scheme does not reach to the target group.
���Evidence of sub-optimality suggests the need to draw lessons from observed weaknesses and redesign programmes accordingly,��� Planning Commission deputy chairman Montek Singh Ahluwalia said after reflecting on a performance evaluation study of TPDS. The scheme, introduced in ���97, aims to provide food security to people below poverty line (BPL).
The cost of handling foodgrains by public agencies are also found very high. The Centre spends nearly Rs 3.7 to transfer Re 1 to the poor, indicating ���one rupee of budgetary consumer subsidy is worth only 27 paise to the poor,��� Mr Singh said.
���TPDS is also plagued by widespread leakage and diversion because of a number of systemic weaknesses. The factors contributing to the failure include those relate to identification of BPL families and those relating to the characteristics of the delivery mechanism. Both contributing to abnormally high delivery cost in most states,��� the study said.
On identification of BPL families, it suggested to introduce a new methodology. ���It would be appropriate to do away with the methodology of identifying poor families on the basis of income or expenditure criterion, as identifying sources of income at the household level and measuring them with precision on such a large scale are fraught with many problems,��� the study said.
Recommending the BPL identification survey to be carried out in all states it suggested to involve reputed agencies such as the NSSO, NCAER and state level research institutions in the effort.
���Evidence of sub-optimality suggests the need to draw lessons from observed weaknesses and redesign programmes accordingly,��� Planning Commission deputy chairman Montek Singh Ahluwalia said after reflecting on a performance evaluation study of TPDS. The scheme, introduced in ���97, aims to provide food security to people below poverty line (BPL).
The cost of handling foodgrains by public agencies are also found very high. The Centre spends nearly Rs 3.7 to transfer Re 1 to the poor, indicating ���one rupee of budgetary consumer subsidy is worth only 27 paise to the poor,��� Mr Singh said.
���TPDS is also plagued by widespread leakage and diversion because of a number of systemic weaknesses. The factors contributing to the failure include those relate to identification of BPL families and those relating to the characteristics of the delivery mechanism. Both contributing to abnormally high delivery cost in most states,��� the study said.
On identification of BPL families, it suggested to introduce a new methodology. ���It would be appropriate to do away with the methodology of identifying poor families on the basis of income or expenditure criterion, as identifying sources of income at the household level and measuring them with precision on such a large scale are fraught with many problems,��� the study said.
Recommending the BPL identification survey to be carried out in all states it suggested to involve reputed agencies such as the NSSO, NCAER and state level research institutions in the effort.
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