Background Context
The concept of conditional cash transfers (CCTs), like the Deen Dayal Lado Lakshmi Yojana, gained prominence in the late 20th century as a tool for poverty reduction and human capital development. Originating in Latin America, particularly with programs like Progresa (later Oportunidades) in Mexico in the late 1990s, CCTs aimed to break the cycle of poverty by providing financial assistance to poor families contingent upon investments in their children's health and education. These programs were designed to address both immediate needs and long-term development goals. The success of early CCT programs led to their adoption in various forms across the globe, including in India, where state governments have implemented similar schemes tailored to local contexts and priorities, often focusing on specific vulnerable groups like girls and women.
Current Developments
In recent years, there has been a growing emphasis on evaluating the effectiveness and impact of CCT programs. Studies have focused on assessing whether these programs achieve their intended outcomes, such as improved school enrollment, reduced malnutrition, and enhanced gender equality. There is also a trend towards integrating CCTs with other social protection measures, such as employment guarantee schemes and food security programs, to create more comprehensive support systems for vulnerable populations. Furthermore, technology is playing an increasing role in the implementation of CCTs, with digital payment systems and mobile-based monitoring tools being used to improve efficiency and transparency. The future of CCTs is likely to involve greater customization to address specific needs and challenges, as well as a stronger focus on sustainability and long-term impact.
Practice MCQs
Question 1
Consider the following statements regarding Conditional Cash Transfer (CCT) programs:
1. CCT programs provide financial assistance to beneficiaries only upon meeting specific conditions related to health, education, or social development.
2. The primary goal of CCT programs is solely to alleviate immediate poverty without focusing on long-term human capital development.
3. CCT programs have been implemented exclusively in developing countries and are not utilized in developed nations.
Which of the statements given above is/are correct?
- 1 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Explanation: Statement 1 is correct as CCTs are conditional. Statement 2 is incorrect as CCTs aim for long-term development. Statement 3 is incorrect as some developed nations also use CCTs.
Question 2
Which of the following is NOT a typical feature of Conditional Cash Transfer (CCT) programs?
A) Linking financial assistance to school attendance
B) Providing cash transfers regardless of beneficiary behavior
C) Requiring regular health check-ups for children
D) Promoting gender equality through targeted support for girls
- Linking financial assistance to school attendance
- Providing cash transfers regardless of beneficiary behavior
- Requiring regular health check-ups for children
- Promoting gender equality through targeted support for girls
Explanation: CCT programs are conditional, meaning that cash transfers are only provided if beneficiaries meet certain requirements. Providing cash transfers regardless of behavior is not a feature of CCTs.
Question 3
Assertion (A): Splitting the monthly aid payment in the Deen Dayal Lado Lakshmi Yojana may cause financial distress to beneficiaries.
Reason (R): Beneficiaries may rely on the full monthly amount for their daily needs and immediate expenses.
In the context of the above statements, which of the following is correct?
- Both A and R are true, and R is the correct explanation of A
- Both A and R are true, but R is NOT the correct explanation of A
- A is true, but R is false
- A is false, but R is true
Explanation: Both the assertion and reason are true, and the reason correctly explains why splitting the payment can cause distress.
Previous Year Questions
PYQ 1 - UPSC Prelims 2024 2024
Which of the following statements is/are correct regarding the Deen Dayal Lado Lakshmi Yojana?
1. It is a central government scheme aimed at promoting girls' education.
2. The recent amendment involves splitting the monthly aid payment into two parts.
3. The scheme requires beneficiaries' children to demonstrate academic excellence or rehabilitate children from malnutrition to maintain eligibility.
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Explanation: Statement 1 is incorrect as the Deen Dayal Lado Lakshmi Yojana is a state government (Haryana) scheme. Statements 2 and 3 are correct based on the provided information.
PYQ 2 - UPSC Mains 2024 2024
Discuss the potential socio-economic impacts of the recent changes in the Deen Dayal Lado Lakshmi Yojana. How might these changes affect the beneficiaries and the overall goals of the scheme?
PYQ 3 - SSC CGL 2023 2023
The Deen Dayal Lado Lakshmi Yojana is associated with which of the following states?
- (a) Uttar Pradesh
- (b) Madhya Pradesh
- (c) Haryana
- (d) Rajasthan
Explanation: The Deen Dayal Lado Lakshmi Yojana is a scheme of the Haryana government.
PYQ 4 - SSC CHSL 2023 2023
Under the amended Deen Dayal Lado Lakshmi Yojana, what is the maximum tenure for the recurring deposit?
- (a) 3 years
- (b) 5 years
- (c) 7 years
- (d) 10 years
Explanation: The recurring deposit tenure is not exceeding 5 years.
PYQ 5 - IBPS PO 2023 2023
What is the primary objective of the recurring deposit component introduced in the amended Deen Dayal Lado Lakshmi Yojana?
- (a) To provide immediate cash benefits
- (b) To promote long-term savings
- (c) To fund government infrastructure projects
- (d) To provide loans to beneficiaries
Explanation: The recurring deposit component aims to promote long-term savings among the beneficiaries.
PYQ 6 - SBI PO 2023 2023
The Deen Dayal Lado Lakshmi Yojana requires beneficiaries to have an annual income of less than:
- (a) ₹50,000
- (b) ₹1 lakh
- (c) ₹2 lakh
- (d) ₹5 lakh
Explanation: The eligibility criteria for the scheme include an annual income of less than ₹1 lakh.
PYQ 7 - CDS 2023 2023
Which of the following is NOT a stated objective of the amended Deen Dayal Lado Lakshmi Yojana?
- (a) Promoting girls' education
- (b) Encouraging long-term savings
- (c) Improving child nutrition
- (d) Providing employment opportunities
Explanation: While the scheme aims to promote girls' education, encourage savings, and improve child nutrition through social development-linked criteria, it does not directly provide employment opportunities.
PYQ 8 - CDS 2023 2023
The recent changes to the Deen Dayal Lado Lakshmi Yojana in Haryana have been criticized primarily because:
- (a) They increase the financial burden on the state government.
- (b) They reduce the amount of aid provided to beneficiaries.
- (c) They may negatively impact beneficiaries who rely on the full monthly amount for daily needs.
- (d) They exclude beneficiaries from lower income groups.
Explanation: The primary criticism is that splitting the payment may cause distress among women who rely on the full monthly amount for their daily needs.