Comptroller and Auditor General (CAG) has pointed out several shortcomings in the Public Distribution System (PDS) and said the most significant of these was ‘inefficient targeting.’ “Leakages were widespread. Ineffective implementation, poor administrative arrangements and blurred accountability structure impaired the effectiveness of delivery,” the CAG said in its latest report on the Ministry of Food and Consumer Affairs.
“Review of PDS including revamped PDS and targeted PDS showed several deficiencies in respect of targeting of beneficiaries, adequacy of food and nutritional security, meagre income transfer to the targeted groups and high cost of operations and higher prices charged from consumers,” it said. Poor quality and absence of proper vigilance system also affected the fulfillment of objective of availability, affordability, accessibility and acceptability of food grains, the CAG report said.

It said that the total food subsidy gradually increased to Rs 8700 crore during 1998-99 from only Rs 2800 crore in 1992-93. Besides, some state governments spent large amounts on their own schemes of food subsidy.

“Yet, while the guaranteed procurement at minimum support price benefited the farmers, the system did not benefit the general public and much less the people below poverty line,” it said.


Bureau Report