Advertisement
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Airports play a much bigger role than just enabling travel -...
Why does the same hotel brand operate multiple properties in...
The Asian Development Bank has suggested that India can strengthen its social protection system by adopting an integrated framework that brings together pensions, health insurance and disability coverage. The approach aims to reduce duplication, improve beneficiary targeting and make better use of public funds. It also recommends expanding direct benefit transfers, shifting subsidies towards investment-led support and introducing impact assessments. These measures can help improve fiscal efficiency while ensuring support reaches the right groups and freeing resources for infrastructure and long-term growth.
The Asian Development Bank has stated that India can improve the effectiveness of its social protection system by adopting an integrated framework that reduces duplication of benefits, improves targeting and optimises fiscal resources. Advertisement
In its Asia Development Outlook report released recently, the multilateral agency highlighted that multiple central and state-level welfare schemes currently serve overlapping beneficiary groups. It noted that coordination remains limited in areas such as eligibility criteria, benefit levels and delivery mechanisms, which affects overall efficiency.
ADB explained that a unified framework combining pensions, health insurance and disability coverage, supported by contributory schemes, would help address different vulnerabilities more effectively. The agency indicated that such a structure would ensure benefits are streamlined and better aligned with the needs of individuals.
The report also pointed out that social protection requirements differ across states due to variations in demographics, employment patterns and fiscal capacity. A more integrated system would allow states to adopt tailored approaches while maintaining consistency in broader policy objectives.
ADB further observed that improving coordination in welfare programmes can help governments sustain or strengthen income support while controlling overall expenditure. This, in turn, can free up financial resources for infrastructure development and investments in human capital, which are essential for long-term economic growth.
On subsidy reforms, the agency suggested expanding direct benefit transfers linked to verified beneficiary identities to improve fiscal efficiency. It noted that such measures can reduce leakages and eliminate duplication, building on India's earlier efforts like the JAM trinity and DBT systems that have already improved delivery in schemes such as LPG subsidies.
The report recommended shifting towards vulnerability-based targeting of subsidies and introducing sunset clauses for new programmes. It added that mandatory impact assessments before extending schemes would help ensure accountability and effectiveness.
ADB also highlighted the need to move from consumption-based subsidies to investment-oriented support. It gave the example of promoting rooftop solar installations instead of providing free electricity, stating that such a shift can reduce recurring fiscal burden while improving household resilience and sustainability.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
