Cash Transfer for Subsidy
THE Finance Minister Pranabda , while presenting the Budget for 2011 announced cash for subsidy on kerosene, fertilizer etc to the poor section of Indian society. The cash transfer is possible only through bank or post office account, otherwise that could generate the biggest ever scam of the country. A recent survey by BCG - CII has revealed that only 27% of people with income less than rs. 90,000 p.a. have a bank account. (Corresponding figure for people with income more than 2.0 lakhs is 91%) Families below poverty line, with income much below 90K, obviously, are not expected to have access to banks. Why? THE Survey reveals that of the people with income below 90K, 41% have widely fluctuating income. They are compelled to take loan for housing (33%), health care (15%), family occasions ((8%). emergency (7%) and paying off loans (4%). Only 24% of the loan taken is for income generation and 9% for education. Of the loan taken 52% is from money lender, family or friends while loan f