JAM Trinity

Government schemes are an important part of the UPSC syllabus. Every year, questions are asked based on them in both the UPSC Prelims and the Mains exams. In this article, you can read about the JAM Trinity scheme.

JAM Trinity Details

  • JAM stands for Jan Dhan Yojana, Aadhaar and Mobile number.
  • The government intends to use these three modes of identification to implement one of the biggest reforms in independent India – direct subsidy transfers to the poor.
  • Current subsidy schemes take an indirect route to reach the poor of the country. Examples are the PDS, the MGNREGA, etc.
  • These kind of subsidies are more costly to the exchequer, and also cause a lot of corruption, as there are a lot of intermediaries before the actual benefit reach the poor.
  • With Aadhaar helping in direct biometric identification of disadvantaged citizens and Jan Dhan bank accounts and mobile phones allowing direct transfers of funds into their accounts, it may be possible to cut out all the intermediaries.

JAM Trinity Significance

  • The government spends about 4.2% of the GDP on subsidies. This is a costly affair.
  • Moreover, in the current scheme of providing subsidies, most of the benefits do not reach the intended beneficiaries. The rich end up taking most of the benefits.
  • Also, there is a lot of leakages in the process. Over 15% of PDS rice, 54% of wheat and 48% of the sugar is lost in leakages.
  • This leaves no change in the living standards of the poor, which is why subsidies are there in the first place.
  • The JAM Trinity is set to circumnavigate all these problems and directly benefit the poor people of this country.

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