ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Andaleeb RahmanSubscribe to Andaleeb Rahman

Revival of Rural Public Distribution System

This paper quantifies the improvements in the public distribution system in rural India after 2004-05 using data from three rounds of surveys conducted by the National Sample Survey. It finds that Tamil Nadu and Himachal Pradesh continue to be the leading performers, but early movers such as Odisha saw improvements in the functioning of the PDS between 2004-05 and 2009-10. In late movers such as Bihar and Jharkhand, improvement was evident between 2009-10 and 2011-12. The paper also estimates a seemingly unrelated regression model to quantify changes in the shares of consumption from the market, the PDS and home produce across states over the three rounds. The share of the PDS as a source of rice and wheat has increased over time, suggesting an improvement in its outreach.

Booming Bihar: Fact or Fiction?

In recent weeks, much has been made of a "booming" Bihar. But a look at disaggregated data shows that the growth has been based almost entirely on the public works programme, which boosted state output in construction during the boom in that sector from 2004-05 to 2006-07. Despite this, value added in construction seems overestimated, given the infirmities in estimation methods. Further, there has been no measurable multiplier effect of this infrastructural investment on the rest of the Bihar economy.
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