Direct Cash Transfer (DCT): A Step in Right Direction?

In present age, technological advancement and innovations are playing increasingly important role in our day-to-day lives. But, in the mean time, governments move to link the technology to transfer cash directly in to beneficiaries account has sparked much debate. Some people argue that direct cash transfer is fundamentally benefit the below poverty line population in India while many contend that it has detrimental effect as well. First, DCT scheme will definitely help the government to consolidate fiscal deficit due to heavy fuel subsidy (Petroleum products such as Petrol, diesel, kerosene etc.) burden. And this fiscal consolidation will help to revive the Indias economic growth back on track. Secondly, petroleum products will be sold on market rate, which will encourage competitive market and open the doors for private player. They will be able to address losses on their balance sheets. Therefore, reducing the black market of these goods, more accountable and taxable money pump in to the market, and hence a healthy economic climate for the growth of the country. In addition, it will vanish the middleman from the picture and shows governments will to address corruption issue. Hence government of India will gain political trust from the society. On the other hand, some section of the population argue that majority of the men of these beneficiaries households are alcoholic, therefore, money transfer through DCT will be wasted to buy alcohol. However, the issue can be sorted out by transferring the cash into the female beneficiary of the household. So, that money is not gambled and not used to satisfy drinking habits of the men beneficiaries. All in all, it is increasingly challenging for the government to reduce the fiscal deficit with in the desirable limit to revive countrys GDP (Gross Domestic Product) growth rate and attract foreign fund to invest in India. In recent times, at least government has shown some sign to reduce the deficit by introducing the direct cash transfer scheme. It is taken as the positive signal by the financial credit agencies, economists and the equity market. Hence I firmly believe that the government is on the right side of the road map to increase the growth of the contry.

It is the voter and not the politician who is at fault? Since Indias freedom, worlds largest democracy has seen ups and downs in its social and political changes. Some people says, over the period of time, agenda of political parties are shifted from one issue to another, and hence corrupt the ideology of people who were believer of Gandhis ideology at some point of time. Some says that neither Gandhi is alive nor the public of his ideology. Therefore, I would believe that it is the voter who is always at the fault. As per the history of books, India is mentioned as Hindustan. A Hindu society follows the cast system, a system that divides labor and power as per the structure of the cast system. The basic structure consists of Brahmins, Kshatriyas, Vaishyas and Shudras. Hence, political system and politicians parties stared supporting different section of the people based on their cast to gain their individual political ambitions. The system was created, followed by the people much before Indias freedom and subsequently adopted by the political system to use as weapon in an election to be in power. The India is very diversified country and it does have different political conditions and demand from the people at national and state level politics. One state might demand development while other may fight election basis on the cast or religion. It is hardly possible for an educated Muslim or Dalit to win an election in largely populated Brahmins constituency and other way around for Brahmins to win in Muslim or Dalit constituency. For example, first, in Bihar major section of MLAs are accused of murder, rape and serious criminal charges, following the same trend in Uttar Pradesh. Second, in Gujarat election, former home minister of state, prime accused of fake encounter case won the election with heavy margin. Do these politicians come in power without the support of voters? No, people of India vote them to be in power so that discriminatory system continues. However, there are section of population that believe in humanity rather than the color of the skin. But still majority of the section live in imaginary superstitious world and vote such people to come in power to keep alive their belief and tradition of discrimination and honor through the cast system. Hence it is the voter whose minds are corrupted with biased views about cast and religion.

Indian government should stop funding IITs and IIMs, instead divert the funds to primary education? Recent times there is debate over the issue of making IIMs and IITs a body that subsequently submits the reports of higher education reforms and government will allow them to award degrees. However, industry and alumni argues that government has no business to do business with Indias so called premier institutes. And let IITs and IIMs work independently on decision-making. These have definitely raised an issue that government should divert funds, which were used to develop these well-established institutes to primary education. I firmly believe that it would be a better idea to shift our focus to primary education. The right education (RTE), law introduced as part of the entitlement regime authorized by congress led united progressive alliance (UPA) to provide the access with quality education. However, annual status of the education report 2012 says that Indias knowledge deficit has only worsened. To start with, reading levels show a decline in many states. It is increased from 46.3% to 53.20%. Furthermore, mathematical ability decreased from 29.1% to 46.50%. In addition, government school enrollment is felled, student to teacher attendance is decreased and numbers of student not attending the schools have increased. The infrastructure facilities at government schools are not adequate. Student teacher ratio is worse in the middle part of India (Bihar, UP, Uttarakhand, Jharkhand and Orissa). Play ground facilities are not up to the mark in most of the schools that could encourage students to opt for sports. This could be the prime reason why Indians are not better performer in Olympics. The most impotently, drinking water facilities and useable toilets are not adequate. This shows that Indians foundation of building technocrat and business entrepreneur are at risk. It needs prompt attention from government to address the issue and do the needful. In contrast, IIMs and IITs are well established and have strong base of alumni and industrial contribution to have sustainable development in the institutes. At present stage, these institutes will never have financial crunch in the system because of the brand image it has.

What we need is better implementation not better laws? In recent times, Indias slowdown in growth rooted in structural issues. There are no easy way exits for the Indian economy as it struggles to regain its momentum. We have evidenced this because of such improper implementation of laws lead to alleged corruption issues. This has sparked the debate that do we need better implementation or better laws to prevent the citizens from the crisis. However, I firmly believe that implementation of laws will definitely encourage citizens to live better life in true sense. First, India is ranked in most of the surveys as a very difficult place to do business. It is ranked 132 out of 172 participants in ease of doing business. While interest rates being at the lower level as compare to other similar emerging economies. It is because of the improper implementation of laws that lead investor to go on one window to other for the clearance. This often ends up in delayed project implementation and huge increase in the cost of the project. Inadequate implementation of environmental clearance, land acquisition, a sustained slow down will have social implications. Lower medium term growth might not generate sufficient jobs to absorb labor market entrants. Weaker growth also entails a slower reduction in poverty. It is larger picture of improper implementation that gained access to these issues, which will burn the Indian citizens with great anger against the political system and democracy in longer run. In most of the instances, it is evident that police often refuse to lodge a First Information Report when a rich or a powerful person face allegation of crimes like corruption and misuse of power. However, the force in case of general public repetitively misuses IPC act of freedom of speech. It is the nexus between the political class and bureaucrats totally devoted to inadequate implementation of laws. The business tenders and auction laws adequately change to benefit the favored company. Which was the case in 2G scam, Coal Scam and Common Wealth games. With these series of event that have happen in recent times subsequently intensify my belief that India has better laws but its implementation at ground level is almost negligible as compare to other emerging nations. Government of India must focus on structural issue of improper implementation of laws to revive the growth of India.