India has schemes galore for the poor and needy but they often miss the target and even lead to corruption. Before undertaking a project, it should be seen what works and what does not. Bihar is trying to take a step ahead. It is about the process of direct benefit transfer in the public distribution system in one block of Purnea district. Instead of distributing subsidised foodgrain, the system credits the subsidy part to beneficiaries of bank accounts. The system has been replicated in the three Union Territories of Pondicherry, Dadra and Nagar Haveli and Chandigarh. The results have been satisfactory. Grain stealing has stopped. In Chandigarh, thousands of false ration cards have been cancelled.
But there are various odds. It cuts down losses in grain and funds. But the beneficiaries are deprived of a choice. They can use the subsidy to buy pulses, meat, fish and eggs. But there is no guarantee that the beneficiaries will buy only food with the subsidy. In a society where women and children are exploited the government should take an egalitarian attitude. Governments in the states and the Centre are supposed to be serious about literacy and education and about law enforcement. There is no reason why the Direct Benefit Transfer should not work. Bihar has set a fine example.
