The questionable rationale for govt schemes

It is important to shift, in a phased manner, to a good and general policy framework from a situation of a plethora of schemes

The Government of India (GoI) runs a very large number of schemes. Consider some examples: Sahaj Bijli Har Ghar Yojana, PM Fasal Bima Yojana, Emergency Credit-linked Guarantee Scheme, PM Garib Kalyan Rozgar Yojana, Sovereign Gold Bond Scheme, PM Street Vendor’s AtmaNirbhar Nidhi, Kisan Credit Cards, PM Matsya Sampada Yojana, and Deen Dayal Upadhyaya Grameen Kaushalya Yojana. This is only a subset from a very long list of schemes. 

Broadly speaking, the various schemes listed above are ways to intervene in the markets. But the economic rationale is not always clear. Let us examine the whole issue more closely. 

Market mechanism is a