JAM Trinity can help govt implement large-scale, technology-enabled and real-time DBTs: Economic Survey

New Delhi, Feb 26 (KNN) The Economic Survey 2015-16 presented here today in the Parliament by the Union Finance Minister Arun Jaitley emphasizes that JAM Trinity -Jan dhan, Aadhaar, Mobile- can help government to implement large-scale, technology-enabled and real-time Direct Benefit Transfers (DBTs) to improve economic lives of India's poor.

First variety of JAM- PAHAL scheme of transferring LPG subsidies via DBT -has reduced leakages by 24 per cent.

Economic Survey suggests that while deciding where next to spread JAM, policymakers should consider the challenges of beneficiary identification, distributor opposition and beneficiary financial inclusion. Spreading JAM to other areas will reduce leakages and provide more fiscal space to the Government.

Economic Survey argues that policymakers should decide where to apply JAM based on two considerations of-  Amount of leakages and Control of the central government.

If amount of the leakages in a given scheme/area is huge then it can be next target for introduction of JAM as subsidies with higher leakages will have larger returns from introducing JAM. Similarly control of central government will reduce administrative challenges of co-ordination and political challenges of opposition by interest groups.

Based on these two criteria- leakages and central government control-Survey suggests fertilizer subsidies and within-government transfers as two most promising areas for introduction of the JAM. (With PIB Inputs)