Progress of Direct Benefit Transfers

Syllabus:GS3/Economy 

In News 

• Finance Minister Nirmala Sitharaman announced that 1,100 out of 1,200 government schemes are now under Direct Benefit Transfer (DBT), ensuring direct transfers to beneficiaries’ bank accounts. 

Need and Background of Direct Benefit Transfers

• After independence, India sought to overcome the constraints inherited from colonial rule and emerge as a global power, emphasizing centralized planning and public welfare.
• Despite the emphasis on public provisioning, there were widespread issues in accessing welfare benefits due to financial leakages, delays, and inefficiencies.

Direct Benefit Transfer (DBT): Timeline  

• Direct Benefit Transfer deals with transfer of benefits to the marginalized and vulnerable sections of society.
• In 2014, under Prime Minister Modi’s leadership, the Direct Benefit Transfer (DBT) mission was launched, leveraging digital technologies to improve public service delivery.
• In 2014, Pradhan Mantri Jan Dhan Yojna (PMJDY) was launched to address financial inclusion.
• JAM Trinity : The success of PMJDY paved the way for the creation of the world’s biggest targeted payments framework. 

Major Central schemes seeded with DBT

• PM Kisan Samman Nidhi (PM-KISAN): It is a Central Sector Direct Benefit Transfer (DBT) Scheme, under which, financial assistance of Rs.6000/- per annum is provided to all landholding farmer families across the country, subject to certain exclusion criteria.
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): It aims to enhance livelihood security for rural households.
  • Its wages are credited directly to the bank/post office accounts of Mahatma Gandhi NREGS beneficiaries by the Central Government through DBT.
• Pradhan Mantri Matru Vandana Yojna (PMMVY): It aims to encourage improved health-seeking behavior among Pregnant Women and Lactating Mothers (PW&LM).
  • It provides benefits to beneficiaries through Direct Benefit Transfer (DBT).
• Pradhan Mantri Awaas Yojana- Gramin (PMAY-G): The PMAY-G aims at providing 2.95 crore houses to the eligible rural population in the country so as to achieve the objective of “Housing for All”.

DBT’s Impact

• DBT schemes expanded from 28 in 2013-14 to 323 in 2024-25, with funds transferred growing nearly 1000 times, from 7,400 crores to 7 lakh crores.
• DBT has saved around 3.5 lakh crores by reducing leakages and inefficiencies.
• DBT eliminated fake or duplicate beneficiaries, using Aadhar data, with schemes like PAHAL, MGNREGS, and PDS removing over 9.2 crore ineligible beneficiaries.
• DBT ensured timely transfer of benefits, improving the delivery of scholarships, pensions, and social assistance, while eliminating delays and reducing dependency on government offices.
• DBT Increased transparency and accountability and  it allowed the redesign of welfare programs such as Swachh Bharat Mission (SBM), PM-JAY (health insurance), and PM-KISAN (farmers’ cash transfers).

International Recognition

• DBT has been praised by international organizations like the World Bank and IMF for its efficiency, reducing corruption, and broadening the reach of welfare schemes.

Future Potential

• The success of DBT can be leveraged to introduce more welfare schemes, and its efficiency can support innovative policies addressing broader well-being, helping India move towards becoming a developed nation by 2047.

Source :DD News