I have amazing news to share with you all !
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Guynextdoor2
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It really is one of the biggest accomplishments in the subcontinent's history.
blood
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we have seen the levels of corruption in schemes like mnrega due to the middle man . Now if all end beneficiaries have their own account , money can be directly transferred to his/her account .
some times to reduce corruption you don't need a revolution or foot-path level politics , common sense helps .
Understanding corruption in MNREGA
Social programmes in India are beset with corruption. Former Prime Minister Rajiv Gandhi once suggested that only 15% of spending on such programmes actually reached the intended beneficiaries. The Planning Commission of India in 2005 estimated that a similarly low proportion, 27%, of government transfers actually reach the poor. Such embezzlement adds to the strain on state finances, and may make these programmes more regressive than progressive (Olken and Pande 2012, Niehaus and Sukhtankar 2012b)
The scale of this programme is enormous: in 2010-2011, the central government allocated Rs.401 billion, or $8.9 billion, or 3.6% of government spending, to the programme. This puts it on par with other large developing country social programmes such as Oportunidades (formerly PROGRESA) in Mexico. It is the largest ‘workfare’ programme in the world, dwarfing comparable programmes in Argentina or even the Earned Income Tax Credit Scheme in the US in the number of people it reaches.
but,
How does corruption from MNREGA occur? Theft from the materials budget has not been carefully studied, but by law materials costs can constitute at most 40% of the total and in practice they are even lower. Theft from the labour budget has been studied by a number of authors. To understand how it works, consider the following hypothetical scenario. Suppose the statutory wage set by the government is Rs.100 a day. The labourer works for 5 days, but instead of paying him Rs.100 daily, the official pays him only Rs.90, keeping the remaining Rs.50 ((100 – 90) x 5) for himself. Let us call this form of corruption ‘underpayment’. In addition to underpayment, the official also reports to the government that the labourer worked for 10 days rather than 5, and pockets the additional Rs.500 (100 x 5). We’ll call this ‘over reporting’. Under this breakdown, work done by ‘ghost’ workers (people who don’t exist) is also considered over reporting, as would any collusion by workers and officials to extract payments from the government for work that is never done.
some times to reduce corruption you don't need a revolution or foot-path level politics , common sense helps .
Understanding corruption in MNREGA
Social programmes in India are beset with corruption. Former Prime Minister Rajiv Gandhi once suggested that only 15% of spending on such programmes actually reached the intended beneficiaries. The Planning Commission of India in 2005 estimated that a similarly low proportion, 27%, of government transfers actually reach the poor. Such embezzlement adds to the strain on state finances, and may make these programmes more regressive than progressive (Olken and Pande 2012, Niehaus and Sukhtankar 2012b)
The scale of this programme is enormous: in 2010-2011, the central government allocated Rs.401 billion, or $8.9 billion, or 3.6% of government spending, to the programme. This puts it on par with other large developing country social programmes such as Oportunidades (formerly PROGRESA) in Mexico. It is the largest ‘workfare’ programme in the world, dwarfing comparable programmes in Argentina or even the Earned Income Tax Credit Scheme in the US in the number of people it reaches.
but,
How does corruption from MNREGA occur? Theft from the materials budget has not been carefully studied, but by law materials costs can constitute at most 40% of the total and in practice they are even lower. Theft from the labour budget has been studied by a number of authors. To understand how it works, consider the following hypothetical scenario. Suppose the statutory wage set by the government is Rs.100 a day. The labourer works for 5 days, but instead of paying him Rs.100 daily, the official pays him only Rs.90, keeping the remaining Rs.50 ((100 – 90) x 5) for himself. Let us call this form of corruption ‘underpayment’. In addition to underpayment, the official also reports to the government that the labourer worked for 10 days rather than 5, and pockets the additional Rs.500 (100 x 5). We’ll call this ‘over reporting’. Under this breakdown, work done by ‘ghost’ workers (people who don’t exist) is also considered over reporting, as would any collusion by workers and officials to extract payments from the government for work that is never done.
Guynextdoor2
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you have neither, so shut it.
sree45
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If an individual really wants it, the same bank will provide financial assistance to build toilets. But ofcourse you are someone who is more interested in trolling rather than having a sane and constructive discussion.
PoKeMon
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zip
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No we have rivers which takes it all across the border ..
mehul sharma
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we care and if you don't care about anything then learn a word ignore because that's what some smart people suggest
good job trolling as you can see we are a large country with a future more than 50 years and thats why we have different area of development and opportunities.PM Jan Dhan Yojna is beneficial for economic growth which will bring the money for social growth. Trolling is easy to do but making fun of country which is more developed that urs is not a good idea
Judge
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Please do.
This is something most important and will be the biggest blow that India could give against corruption and poverty.
Do you know that because of this Government has started depositing money directly(electronically) to the recipient's account instead of issuing bearer cheque's that traveled thousands of kilometers to reach the recipient...and every recipient had to pay cash as bribe to the clerk just to receive the money that the Government owed him.
For every 1 rupee that GoI spent on the people, less than 15 paise reaches the people. Having 100% individual banking penetration(not the household banking penetration achieved now) will drastically change that ratio.
And I have no doubt that within a few years now, we will achieve 100% individual banking coverage.
Your post is eagerly awaited.
@jamahir - While I appreciate you being idealistic in socialistic issues, you can improve your posts quality by including what is practical today in India, what can be done practically to ensure that our poor population gets better access to services and reduction or poverty and corruption.
Manindra
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Don't you think Libiyan Janhariya copy this idea from Munshi Premchand's Play "Andher Nagari"
Its famous phrase is , Andher Nagari anbujh raja
Takaa ser bhaaji takaa ser khaaja
jamahir
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practically?? why do you think 69 people died of hunger just a few days ago in darjeeling tea estates while no dog goes hungry in india... and all the while the indian military keeps buying weapons but to protect what??
indians should leave their colleges and jobs and change their system... why should anyone else do it for them??
as for the quality of my posts, if my posts are not appreciated, then there is no reason for pdf to exist anymore.
i am being blunt because you are not thinking thoroughly... i beg of you to do so.
huzoor, the libyan jamahiriya worked, because it was sensible and scientific...you are rejecting the comfortable life that libyan jamahiriya had and you want to enjoy the unnecessary hardships and complications that india gives you??
why do you think india is "suicide capital of the world"... the system that india gives you is atricious and insane, a crime against humanity, crime against intelligence... no one respects the indian system... you can maybe go ask obama to turn usa into india... he will laugh in your face.
rather launch a revolution, adopt socialism and change india for the better, you prefer to do the easiest things... do nothing good, suffer yourself, make others suffer.
i will bookmark your reply to show how stubbornly foolish many indians can be.
Manindra
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Don't you think if Libyan Jamhariya idea were practical then it would not in history.
For India I agree current system is not ideal but Jamhariya system is most unpractical.
PlanetWarrior
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The system you support worked well in Libya due to the extensive oil resources which Libya had to fund the idea. Also important to note is that the late Colonel Gaddafi has extensive power to pass laws by decree unlike India which has a snail's pace democracy. India has a socialist system but considering the size of the country and the huge population I am inclined to believe that this should be done away with. A federal system needs to be incorporated into the constitution with a free market capitalist based economy. Let it be a free for all and watch the economy grow. Competition breeds progress. Privatize. Kill off central control and encourage micro and macro businesses as China did.
Pakistani shaheens
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Congratulations to all indians!
-But still I didn't understand, how this initiative will help in lowering poverty rate. I mean how can a poor person will get money out of his empty account?
-And secondly what will be the interest rate of these banks? Will the interest rate not be a burden on the poor people? If there is an interest rate then I am afraid this is not a good development as it will further snatch money away from poor people. Plus I may be wrong but I think the banks are only looking for their own benefit in this case, as they want more people to open account and through which they will get more money from charging interest on them
-But still I didn't understand, how this initiative will help in lowering poverty rate. I mean how can a poor person will get money out of his empty account?
-And secondly what will be the interest rate of these banks? Will the interest rate not be a burden on the poor people? If there is an interest rate then I am afraid this is not a good development as it will further snatch money away from poor people. Plus I may be wrong but I think the banks are only looking for their own benefit in this case, as they want more people to open account and through which they will get more money from charging interest on them
Judge
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There are hundreds if millions of poor people in India who make a 'dehari', very little amounts that they can put away ranging from Rs 50 to Rs 200 for example and save. But they had no where to put this money, so they kept it physically in their huts or slums or gave it to hundi system to send back home (to whichever state they belong).
This will now be mitigated as these people can use the formal banking network to transfer money back to their family which is free of cost.
It reduces the use of the hawala/hundi system by these poor people which charges money and also leads to these criminal networks gaining influence and money.
Lastly, a vast number of these people invested money in chit funds(which are essentially scams) because they had very little surplus money and they were earning no interest in keeping this money at home. So agents of these chit-funds came and took it promising the moon to them.
The last chit fund scam in Bengal was worth thousands of crores of rupees.
Now with the formal banking network they can use the banks for investing in mutual funds(which starts from as little as 500 rupees per month)
Lastly, no banks dont charge interest or money to these people for keeping money in banks. The bank accounts launched under this scheme are zero balance accounts. That means no cost whatsoever is to be borne by these people.
The banks will instead pay them(the people) money(interest) for keeping money in the banks.
This is an immensely positive development.
Apart from these benefits, what is most important is that Governments can transfer benefits/subsidies to the people directly in their accounts instead of other channels in which there is corruption.
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