Positive Externalities Can Justify Giving Goods Instead of Cash

i was thinking about this question before i asked it to you, and i also came up with the idea that positive externalities can justify giving a gooder service instead of a cash transfer. So maybe something like that, there would be a case for giving people goods in kind instead of cash. Does that sound right? I think you want to test it and be careful, because i hear that argument used to potentially give recipient things that they may not need.