Cash transfers in Andhra Pradesh: a lifeline with gaps 

Government must ensure that cash transfers reach all marginalised populations

In Andhra Pradesh, the current and previous regimes have relied heavily on cash transfers to support vulnerable citizens. These transfers reflect a global trend favouring direct cash assistance over traditional aid, based on the belief that recipients can meet their needs more effectively. However, while the State’s cash transfer schemes, such as YSR Rythu Bharosa (RB) and Jagananna Amma Vodi (AMV), are ambitious, our recent study shows that these programmes are not reaching many of those they seek to help, particularly in tribal communities.

Unlike in-kind support, which involves complex supply chains, cash transfers deliver funds directly to beneficiaries, allowing them to make their own choices. In Andhra Pradesh, cash transfers form the backbone of the government’s welfare agenda, providing financial aid across various sectors. Between 2019 and 2024, the government claims to have spent nearly two lakh crores in cash transfer schemes.

The RB scheme, launched in 2019, provides annual financial assistance of ₹13,500 to farmer families. Meanwhile, the AMV programme offers ₹15,000 per year to mothers or guardians of school-going children.

However, our December 2022 survey of over 1,100 households in the Integrated Tribal Development Agency regions of the State revealed that approximately 24% of eligible RB beneficiaries and 15% of AMV beneficiaries did not receive any benefits. These figures are particularly alarming as they highlight a failure to reach the most vulnerable. 

Administrative and technical barriers largely account for these exclusions. Our research identified issues like unlinked Aadhaar numbers, errors in bank account mapping, and unresolved technical glitches. Discrepancies in land records, such as swapped village names, led to payment denials for eligible farmers. The bureaucratic challenges in resolving these issues are often overwhelming, especially for those with limited literacy and access to support.

Research by Silvia Masiero and Chakradhar Buddha on the RB scheme highlights three main issues. Many beneficiaries remain unaware of their exclusion, and grievance redress mechanisms are often ineffective. The design flaws block access to subsidies. Informational barriers occur when beneficiaries are not informed about benefit denials or solutions. Structural challenges, including difficulties in updating incorrect records, exacerbate exclusions. These issues underscore the need for more inclusive welfare systems.

The poorest are often excluded due to glitches and complex error-resolution processes. For tribal communities, especially women, accessing help is even harder due to long travel times and cultural biases in public services.

These challenges raise fundamental questions about the effectiveness of digital infrastructure in delivering welfare. The technological shift has increased the burden on already strained administrative systems and the most vulnerable beneficiaries, for whom “a glitch” can mean missing vital financial help. Instead of simplifying, digital public infrastructure has, in some cases, added layers of complexity.

To address this, the government needs to go beyond the current digital-first approach. A concerted effort is necessary to simplify administrative procedures, enhance ground-level support services, and improve outreach to raise awareness of eligibility criteria and enrollment processes. Investing in local help centres, deploying more mobile support teams, and offering guidance in local languages can bridge the accessibility gap. 

The lessons are clear, technology can make welfare delivery faster and easier for the administration, but it cannot substitute the need for transparent, human-centred support systems. Information gaps, such as unclear reasons for benefit exclusions and ineffective grievance redressal mechanisms, must be addressed to ensure these programmes truly reach and uplift the marginalised. The State must ensure that the promise of cash transfers does not end at the click of a button but reaches every eligible beneficiary. Only then can these ambitious welfare programmes become effective lifelines for the poor.

Chakradhar Buddha is Senior Researcher affiliated with LibTech India. Upasak Das is Senior Lecturer at the Global Development Institute at the University of Manchester. Diego Maiorano is Associate Professor at the University of Naples L’Orientale and Visiting Research Fellow at the Institute of South Asian Studies, National University of Singapore

Published - September 30, 2024 01:03 am IST