Kolkata: Communist Party of India-Marxist (CPI-M) leader Prakash Karat has warned that the UPA Government's Cash Transfer Scheme would dismantle the public distribution system and procurement from farmers.
"The cash transfer scheme will lead to the dismantling of the public distribution system and the procurement from farmers. The Congress Party and the UPA (United Progressive Alliance) government thinks that it can get some electoral benefit by just handing over some cash to the people but this will prove to be very harmful for all the sections who are, who need subsidised food grains, fertilisers etc.," added Karat.
He termed the launching of cash transfer scheme as a politics of vote bank stunt.
The AADHAR linked scheme rolled out direct cash transfer for subsidy beneficiaries from January 1, 2013. This scheme with the punch line 'Aapka Paisa, Aapke Haath' appeared to be in tune with the Congress Party's election manifesto 'Congress ka Haath, Aam Aadmi ke Saath'.
In the scheme, benefits under 29 welfare schemes being operated by different ministries would be transferred through Aadhaar-enabled bank accounts in 51 districts spread over 16 states from January 1, 2013.
Under the scheme, cash transfers will be in the range of Rs.30, 000 to Rs.40, 000 on a yearly basis. Overall, Rs.3, 20,000 crores will be distributed.
The scheme has also come under attack from various political quarters as they allege there are numerous loopholes in it.