Direct benefit transfers to unprivileged reaches Rs 34 lakh crore

The Direct Benefit Transfer mechanism was launched in 2013

The Centre has given away about Rs 34 lakh crore through the direct benefit transfer (DBT) mechanism, Finance Secretary TV Somanathan said, citing a message from Finance Minister Nirmala Sitharaman on March 1.

"This is a testament to the system's effectiveness in eliminating inefficiencies and ensuring that benefits are delivered directly to the citizens without any leakage. It is noteworthy that 1,081 different schemes, including those of state governments, has been seamlessly integrated with the DBT," Sitharaman said in her message.

This is a reiteration from Sitharaman's Budget speech on February 1 where she said that DBT of Rs 34 lakh crore from the government using PM-Jan Dhan accounts has led to savings of Rs 2.7 lakh crore. This has been realised through avoidance of leakages prevalent earlier. The savings have helped provide more funds for Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY).

The PM-GKAY scheme, which provides free food grains to around 81 crore poor people, was extended by five more years covering the period of January 2024 to December 2028. This extension will cost the exchequer around Rs 11.8 lakh crore.

Launched in 2013, the DBT scheme replaced the existing delivery process. Through the use of digital tools, the scheme transfers subsidies directly into the Aadhaar-linked bank accounts of the targeted beneficiaries.

According to the government, DBT has reduced instances of transfer of funds to duplicate or fake beneficiaries by plugging leakages. This has helped in targeting genuine and deserving beneficiaries.

Government data shows that so far in the current financial year, the amount transferred through DBT schemes stands at Rs 4.35 lakh crore for 314 schemes.