Tuesday 13 December 2011

Food security bill... Another joke...

How deluded we are when we think that when an important piece of legislation is introduced, policymakers carefully scrutinise it for some room for improvement. Indian democracy is good at passing progressive-sounding legislation that becomes unpopular later for poor implementation and a consequent feeling of letdown and therefore resentment.
Often the problems of poor implementation that surface later stem from small mistakes in design that could have been corrected at very little cost. One would think that our seasoned politicians would see how politically counterproductive such negligence is, but, alas, there is no evidence of such wisdom. Witness the way the National Food Security Bill(Full Bill) is sleepwalking through its last phase. We are afraid that despite its immense promise to help the poor, it might end up in a quagmire unless the cabinet subjects it to a careful scrutiny.

This Bill is Congress President Sonia Gandhi‘s dream bill.. Here is This Bill in Short...

Food security bill

• It will cover 63.5 percent of the total population including 75 percent of the total rural population. Of this number, 46 percent would be priority households. In urban areas of the 50 percent of total population, 28 percent would be priority households.

• Priority households would be given 7 kg per person or 35 kg per family of government held grains. Subsidised rates would apply to 1 kg of millets, 2 kg wheat and 3 kg rice.

• The bill provides for cash benefits to meet nutritional requirements of pregnant women and lactating mothers and children up to 14 years.

• The bill is likely to cost Rs 1 lakh crore annually in subsidies.

• Pranab Mukherjee, Sharad Pawar and Montek Singh Ahluwalia have objected to this bill in a cabinet note. The PM had set up an EGOM on this. But since this is Congress President Sonia Gandhi‘s dream bill, the govt had to finally give in to her demands.

Also following is in the Bill..

As the NAC draft suggested, the eldest woman over 18 years of age in each family will be regarded as head of the households and the ration card will be in her name.

The grievance redressal mechanism will be three-tiered, as proposed in the draft bill.

In delivery of foodgrains, a significant role for local bodies like panchayats is envisaged.

The Cabinet note points out that annual requirement of foodgrains to ensure food security will be 60.74 million tonnes. The outlay will be Rs 27,663 crore more than is currently being spent on the Public Distribution System.

Besides, the ministry of women and child development has asked for Rs 35,000 crore for the ICDS programme which is part of the food security schemes.

Rs 8,920 crore is the estimated amount required for feeding destitute, homeless and disaster-affected persons.

Rs 13,500 crore will be spent on pregnant and lactating women. Administrative expenses will cross Rs 1,000 crore.

The cost of handling and transportation of food grains would work out to Rs 8,300 crore per annum.

Now here are few question which i want to ask...
1. Why Govt. is ready to invest 1lack crore when it is not able to match its fiscal Deficit ?

2. The Cost of production is going to increase in future and the Govt. prices is going to remain same? how much will the increase? it may become a burden on Govt. of India.

3. Instead of government giving fish cant it teach how to catch a fish? in other words why cant govt invest in giving vocational training or developing some skills to earn livelihood? because in short run Subsidy help but it become a burden in long run and for that vocation skill or skill development is best answer.

4. There are other welfare schemes such as MNREGA, and other which success level is not so motivating then how can we assure that this will work?
5. Inflation??? As per RBI this move will lead to increase in inflation? When RBI taking so much efforts to curb inflation and its not the responsibility of Govt to help RBI?

6.Can this Bill will be implemented successfully? without corruption ?

At the end i just want to say that to remove poverty from India, the bill is not efficient. in my view this is just a trick to maximize vote bank. If govt want to eradicate poverty it must spend in vocational training because in long run  and if this sum is invested in  technical education this will create pool of skilled workforce which will provide competitive advantage to country. If Govt is serious then go with this bill to provide food to poor but please thing about giving vocational training because in long run it can be more effective. 

1 comment:

  1. Its brilliant that govt is coming up such a hugely appreciatable bill it will help many people in the country.Its nice that you mention everything related with the bill like finance and its implementation.Keep writing such informative blogs.

    ReplyDelete