Targeting the really
poor
It was heartening to learn that the minister in charge of Samurdhi
had agreed that the benefits of the scheme should go only to the really
poor and deserving. An admission that he as the Minister of Samurdhi
in the previous government was responsible for doling out the tax
payers money to the undeserving. In an accountable democracy such
a minister would resign. Unfortunately our ministers can say anything,
do anything and still continue to stay in office.
Everyone knows
from his or her own experience, or from the startling fact that
over one half of the households in this country were beneficiaries
of Samurdhi, that lots of people who should not be getting the benefit
are obtaining the money. In fact, according to official statistics,
about 60 per cent of households are said to have received such benefits.
It appears that we are a nation of beggars!
It is also an
equally well-known fact that many of the really deserving poor do
not get Samurdhi benefits. Who then are these Samurdhi beneficiaries?
In any event, the change of heart or mind of the minister was most
welcome. It was not so long ago, soon after he was once again made
a minister under the UNF government, that he announced that he would
expand the scheme to cover 70 per cent of households in the country.
He has either had a change in heart and mind or he has indeed been
made to see sense owing to the stringent public finances in the
country. The latter is more likely.
Those who are
concerned about the responsible and accountable manner in which
public money should be spent would no doubt welcome the change.
Successive governments since 1977 have preached the principle of
targeting the poor. Economists continue to speak about the need
for proper targeting. Yet what we have achieved is a hopeless system
of doling out money to the undeserving. In some cultures it is a
disgrace to get something free. Therefore only the desperately poor,
who have no means of obtaining an income, resort to poor relief.
Not so in Sri Lanka where anything free is worth getting. There
is even a Sinhala saying that a person would even take a cold if
it were free. An indication of a deeply entrenched cultural value.
In the last
Budget the Finance Minister announced that he intends to screen
the poor. The sooner this system is put in place the better for
the country's public finances. If a proper means test could be established,
then this could also be used for screening the really deserving
for public health services, free education and other welfare benefits,
that should be the entitlements of only the poor. Not as today when
the rich and the poor alike obtain these benefits.
A better-targeted
welfare programme could achieve several objectives. By reducing
the number of beneficiaries to the really poor, they could get a
better support package. As it is today, far too many get too little.
The deserving few must get adequately to meet their basic needs.
The public expenditure on a well-targeted program is likely to be
less. Consequently the quality of the welfare package could be improved.
It is meaningless to give free education and health (often better
education and health services) to the rich, while denying the poor
basic amenities.
There are considerable
difficulties in targeting the poor and the deserving. Apart from
the cultural values that we have already referred to, a large proportion
of the population are informal or non-institutional employment.
This means that there it is difficult to determine actual incomes.
Nevertheless it may be possible to develop a system that would over
time improve information and ensure better targeting. A start must
be made and all political parties must subscribe to the need to
do so without trying to gain votes by doling out public funds.
The sooner we
are able to design welfare programmes for the deserving poor, the
sooner we will be able to provide meaningful relief and benefits
for them. It will also relieve the public finances of the country
from unnecessary and wasteful expenditure. Can we ensure a better
targeting of our welfare benefits?
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