combination of JAM
[Jan Dhan + Aadhar + mobile] has enabled
government fund transfer to beneficiaries. The cash
transfers have reduced
leakages and removed ghost beneficiaries. However last
mile service delivery is
still a problem in rural areas. The bank to beneficiary
link is still the
weakest in the JAM cycle.
Changes or improvements in JAM Operations:
1.Direct transfer of
funds from center to Panchayat level by removing
intermediaries like district, state or block.
2.The funds should be
transferred in real
time as expenses occur and for individuals instead of
aggregate payments done
post expenditure. These often lead to excess expenditure
as the money has to be
borrowed by government in advance.
3.Fig 1: JAM Trinity
funds are allocated in advance and
the expenditure doesn’t occur then the resources are
wasted. This might happen
during forecast errors.
encountered with JAM are
identifying the beneficiaries in real time, maintain
intergovernmental coordination for efficient transfers,
and supply chain
interest groups that oppose this technology, beneficiary
and beneficiary vulnerability.
can best be
implemented in sectors where government agencies can
coordinate better and
where leakages are high like fertilizer subsidy and
within government fund
can also be
implemented by two methods like D.B.T. and Bio-metrically
Authenticated Physical Uptake i.e. once identity is
authenticated by Bio-metric means physical goods
can be claimed at subsidy.
Official YouTube Channel of UPSCFEVER - #1
Score more than 80% marks and move ahead else stay back and read again!