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Direct Cash Transfer scheme in India has been touted as the biggest 2014 poll based factor by the educated class in India, with a subsidy system bigger than any other country in the world, India, has a lot of shortcomings in terms of how the subsidy reaches the poor. Subsidy is given for kerosene (household cooking needs for the extreme poor), rice/wheat as staple food, education (as weekly incentive to extreme risked kids), vaccines, salt, fertilizers, etc.

This system is way different the way this article makes it look like, that just give money to those who need it. But in fact, the real factor for a subsidy system to work is, that people overtime accept, that they need help, for ex: like they accept over time, that they will spend their own money on other things, while use the medical subsidy on vaccines.

This is fundamentally supported by the fact of efficiency, if they use that subsidy in any other way then it is meant, they would not get maximum efficiency.

Corruption in this system is a given, whether it is India or US, it is a very hard "on the thin thread" system to maintain.




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