Yeah, this I'll agree with. It is socialist. It can be abused (in many places, it shows that pure cash would be superior, but people are paternalistic). The corruption mostly occurs at the rent-seeking stage ("Puhlease, Mr. Senator, put my product on the list of approved products!").
You say it's much abused, but the abuse doesn't cost all that much. All the abuse occurs at the disenfranchised level, and we know that cohort cannot cause much harm.