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Negative sides of Direct Cash Subsidy

One of major decision of Indian government is Direct Cash Subsidy. Under this scheme, direct cash will be deposited in to the bank account of direct beneficiary. Government claims that this scheme will reduce corruption because cash will directly reach beneficiary account cutting middlemen. However, biggest question mark over the success of this scheme is failure or misuse of this scheme in other parts of world.

Many top analysts and experts believe that you can give cash to a person; however, in return there is no guarantee that he will use this cash in right manner on essential items. There is great possibility that large numbers of beneficiaries will use this cash for wrong purpose and there will be no positive effect of this scheme on their life.

Moreover, there are large numbers of fake BPL card holders in India and they will also benefit from this scheme. It will be difficult task to distribute this cash to right people because of high levels of corruption in system. All these challenges make it hard to implement this scheme in right manner. However, at end I still hope that this scheme will create some positive effect on the lives on millions of poor people in India.

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