Bolsa Familia

I came across a very interesting programme run by the Brazilian government named 'Bolsa Familia'. It addresses the issue of cash lending directly to the poor.

It started in 2001 with a programme aimed at education. It expanded to cover range of services like food and fuel and now is estimated to cover 2.6 million families. The concept of this programme revolves around the govt transferring cash straight to the poor families in lieu of certain conditions like school attendance of the kid,nutritional monitoring,pre natal and post natal tests. The programme is a success based on certain figures. Brazil's poverty levels came down. Economic growth increased. Studies have estimated that the income of the poor increased 7 times more than that of the rich.

It is important for the Indian government to look into such programmes and initiate processes wherein the poor can get cash directly from the government. The convoluted subsidy system is a farce.