Jago Party has always been of the view that the present subsidy delivery system of the government is utterly corrupt, wasteful and inefficient. It has not helped the poor because a big portion of subsidized goods [65% of PDS foodgrains, for example] gets diverted to black market owing to price differentials. The current subsidy on kerosene is Rs 20.56 per liter while the same on domestic LPG is Rs 356 per cylinder. Jago Party has been propagating the view that direct payment of cash in lieu of subsidy is the best way to remove corruption and black marketing.
Government of India, under public pressure, has now realized its folly and decided to form a task force to facilitate direct payment of cash to beneficiaries of subsidies like foodgrains, kerosene, LPG, fertilizers etc. This inter-ministerial task force, headed by Unique Identification Authority of India (UIDAI) Chairman, Nandan Nilekani would submit its report within 4 months and suggest practical ways to implement the scheme of direct transfer of cash.
Under this new concept, the poor would be given a fixed amount [say, Rs 800 p.m.] and they would be free to use this amount to buy food, kerosene, LPG or whatever they like. There would be no need to have an elaborate system of administration for delivery of subsidized goods involving millions of babus, politicians and middlemen who tend to be benefitted illegally by differences in prices between subsidized goods and open market.
The next step would be to scrap all the so-called “welfare” schemes in areas like housing, education, health, credit etc and build up a system of free market economy based on fair competition. Under such a system, anybody can succeed and earn money by following the demands of the market. In the same process, he would be offering better and cheaper goods and services to consumers. That would ensure rapid growth of the whole society.
Jago Party is determined to bring about these reforms in the system.