A cost-benefit analysis done by the National Institute of Public Finance and Policy (NIPFP) states that Integrating Aadhaar (unique identity number) with social welfare schemes will tighten leakages and produce almost 53 per cent returns to the Government. Our Government decided to roll out direct cash transfer to the beneficiaries of 16 States in the first phase of Aadhaar-based services from 01 Jan 2013. These schemes to be covered including the public, subsidised LPG and kerosene, distribution system, rural job scheme, health, subsidised fertiliser, housing and education.
The analysers explain into account the costs of developing and maintaining Aadhaar, and of integrating this with the schemes for next 10 years. The Government will be benefited by 52.85 per cent estimated “even after taking all expenditure into account, and making all the modest assumptions for leakages, approximately about 7-12 per cent of the value of subsidy/ transfer. As per study pointed out by NIPFP states that the 52.85 per cent internal rate of return to the Government will depend on rapid integration and on how comprehensive of these schemes with Aadhaar will be. As per cost-benefit analyser, the Government will growth up to Rs 20,265 crore up to 2020-21, with total cost of integrating Aadhaar will be Rs 4,845 crore, and total benefit that may accrue will be Rs 25,100 crore.
The National Development Council comprising all State heads in the 12th Plan document which is yet to be approved aims at financial schemes included by providing Aadhaar-linked banking services to beneficiaries and progressively moving to “cash transfers” for major subsidies, like fertiliser and food. The study for making a case for the Government’s objective of financial inclusion, states in PDS, for instance, the Aadhaar-enabled system would not only minimise leakages by better matching supply with demand, but “this would be a revolution in financial inclusion” if the poors enable to access mobile-phone based payment.
The Government analyser suggested in the later stages other numerous schemes and programmes that will involve some kind of transfer from to a resident or a citizen could be benefited. A report by the Consultative Group for Assisting Government quoted that the Poor which estimated in 2008-2009, a total amount of Rs 3, 25,000 crore paid out in subsidies for 22 welfare schemes.