Govt's DBT comes out as winner, saves Rs 3.48 lakh crore by plugging leakages

Introduction of the DBT has helped govt plug leakages

Twelve years after it was launched, the Direct Benefit Transfer system has turned out to be a winner flagship programme, a latest study said on Monday. The system, which was launched on January 1, 2013 has so far achieved cumulative savings to the tune of Rs 3.48 lakh crore, as per the study done by BlueKraft Digital Foundation.

According to the assessment, there has been a marked improvement in the public spending with the government allocations going down to just 9 percent from earlier 16 percent. The study studied the data between 2009 and 2024. The report revealed the impact of the DBT system on subsidy rationalisation, budgetary efficiency as well as social outcomes.

One of the significant points highlighted by the report showed how the shift from paper-based disbursals to direct digital transfers made public funds reach the beneficiaries in timely manner. The use of JAM trinity - Jan Dhan bank accounts, Aadhaar unique ID numbers and mobile phones led to transparent transfers on an unprecedented scale.

"As part of the methodology for assessing the DBT impact, the Welfare Efficiency Index was developed. A sharp surge in WEI underscores the success of DBT in optimising fiscal resources while broadening coverage for millions of beneficiaries. The sectoral savings, particularly in high-leakage programs like food subsidies, MGNREGS, and PM-KISAN, illustrate how the system’s integration of Aadhaar and mobile-based transfers has addressed inefficiencies and curbed misuse," the government said in a statement.

(With agency inputs)