Cash or Kind?
In my company, they give gift vouchers as rewards. Sure, you get to pick the mall or store from which the voucher is issued, but it’s not the same as cash. When I asked why they don’t give cash, I was told that when the reward comes as cash (and hence as part of the salary), people don’t even realize they got an award! But with a voucher (or so they told me), you know exactly what you got as a reward. The association to the reward is clear, but not so with cash. With that reasoning in the background, it was interesting to read about this reform discussion in the budget as to whether it was better to give cash (instead of subsidies) to the poor. Those in favour feel that cash can be targeted at the people who are poor, whereas subsidies end up getting doled out to even those who don’t need them. (Think of the amount you pay for that gas cylinder to see the point). Plus, the cash option gives the poor to use the money the way they want rather than having the government decide the items ...