India’s Direct Benefit Transfer (DBT) system has led to cumulative savings of ₹3.48 lakh crore by preventing leakages in welfare distribution.
Key Findings from the Report
• Reduction in Subsidy Allocations: Subsidies decreased from 16% to 9% of total government expenditure since DBT implementation.
• Improved Fiscal Efficiency: The Welfare Efficiency Index has nearly tripled, reflecting better effectiveness and inclusion.
• Elimination of Ghost Beneficiaries: DBT ensures funds reach genuine recipients, reducing fraud and middlemen.
• Expansion of Beneficiary Coverage: The number of beneficiaries surged 16-fold, from 11 crore to 176 crore.
About Direct Benefit Transfer (DBT) system
Overview
• Launched: January 1, 2013, by the Government of India.
• Objective: To directly transfer subsidies and benefits to beneficiaries’ bank accounts, eliminating middlemen and reducing leakages.
• Boosts Financial Inclusion: Encourages digital banking and Aadhaar-linked transactionshttps://www.iasjnana.com/.
