M directs cash transfers for social welfare schemes

New Delhi: Prime Minister Dr Manmohan Singh Friday set up a new system to ensure the beneficiaries of government welfare schemes, like old age pension and educational scholarships, receive cash directly through bank transfer.

The new initiative aims at routing all subsidies through an electronic cash transfer to bank accounts, leveraging the Aadhar cards.

The central government’s annual bill on all social welfare schemes comes to around $65 billion (Rs.3.25 lakh crore).

In this regard, the prime minister has set up a national ministerial committee under him which will also have ministers of finance, HRD and other departments dealing with social welfare as members.

The panel will now work out a road map to fast-track electronic cash transfer in respective ministries in a time bound manner, an official in the Prime Minister’s Office told IANS.

“The cash transfer mechanism will ensure the benefits reach the intended targets, wastage is reduced and there is control on expenditure, apart from facilitating reforms,” the official said.

Source: IANS