{"id":41929,"date":"2025-04-24T19:28:17","date_gmt":"2025-04-24T13:58:17","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=41929"},"modified":"2025-04-24T19:28:38","modified_gmt":"2025-04-24T13:58:38","slug":"india-dbt-system-yields","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/24-04-2025\/india-dbt-system-yields","title":{"rendered":"India\u2019s DBT System Yields"},"content":{"rendered":"\n<p><strong>Syllabus: GS 3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India&#8217;s Direct Benefit Transfer (DBT) framework<\/strong> is offering valuable insights for governments worldwide revising their social protection systems.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Direct Benefit Transfer (DBT) system<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It was launched on January 1, 2013, to reform government welfare delivery by simplifying processes, ensuring accurate targeting of beneficiaries, reducing fraud, and facilitating faster flow of information and funds.\n<ul class=\"wp-block-list\">\n<li>The DBT Mission, originally in the Planning Commission, was transferred to the <strong>Cabinet Secretariat in 2015 for better coordination.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>\u00a0Jan Dhan, Aadhaar, and Mobile (JAM) form <\/strong>the backbone of the system, enabling efficient and transparent transfers.\n<ul class=\"wp-block-list\">\n<li>It aims to ensure <strong>maximum governance with minimum government, <\/strong>enhancing transparency and accountability.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>It\u00a0 covers schemes like scholarships, subsidies, wages, pensions, and cash for food grains.\u00a0<\/li>\n\n\n\n<li>Its scope continues to grow rapidly with the adoption of new programs and digital technologies under the <strong>Digital India Programme.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cecac9\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"724\" height=\"445\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/04\/The-Direct-Benefit-Transfer-system.png\" alt=\"The Direct Benefit Transfer system\" class=\"not-transparent wp-image-41931\" style=\"--dominant-color: #cecac9; width:490px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/04\/The-Direct-Benefit-Transfer-system.png 724w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/04\/The-Direct-Benefit-Transfer-system-300x184.png 300w\" sizes=\"auto, (max-width: 724px) 100vw, 724px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Progress<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s Direct Benefit Transfer (DBT) system has greatly improved welfare delivery, <strong>cutting fiscal leakages by \u20b93.48 lakh crore<\/strong> and making subsidies more targeted.<\/li>\n\n\n\n<li>The rise in the <strong>Welfare Efficiency Index (WEI)<\/strong> highlights DBT\u2019s success in optimizing fiscal resources while expanding beneficiary coverage.\u00a0<\/li>\n\n\n\n<li>Savings in sectors like food subsidies, <strong>MGNREGS, and PM-KISAN <\/strong>demonstrate the effectiveness of <strong>Aadhaar <\/strong>and <strong>mobile-based transfers<\/strong> in reducing inefficiencies and misuse.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Sectoral Analysis: DBT has particularly benefited high-leakage programme<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Food Subsidies (PDS)<\/strong>: \u20b91.85 lakh crore saved, accounting for 53% of total DBT savings. This was largely due to Aadhaar-linked ration card authentication.<\/li>\n\n\n\n<li><strong>MGNREGS<\/strong>: 98% of wages were transferred timely, saving \u20b942,534 crore through DBT-driven accountability.<\/li>\n\n\n\n<li><strong>PM-KISAN<\/strong>: \u20b922,106 crore saved by deleting 2.1 crore ineligible beneficiaries from the scheme.<\/li>\n\n\n\n<li><strong>Fertilizer Subsidies: <\/strong>Sales of 158 lakh MT of fertiliser were reduced, saving \u20b918,699.8 crore through targeted disbursement.<\/li>\n\n\n\n<li><strong>Subsidies dropped<\/strong> from 16% to 9% of government expenditure, while beneficiaries increased from 11 crore to 176 crore.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e2e6e2\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"694\" height=\"361\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/04\/estimated-saving-by-scheme-category.png\" alt=\"estimated saving by scheme category\" class=\"not-transparent wp-image-41930\" style=\"--dominant-color: #e2e6e2; width:558px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/04\/estimated-saving-by-scheme-category.png 694w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/04\/estimated-saving-by-scheme-category-300x156.png 300w\" sizes=\"auto, (max-width: 694px) 100vw, 694px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Issues with identifying real beneficiaries\u00a0<\/li>\n\n\n\n<li>Aadhaar mismatches and biometric failures<\/li>\n\n\n\n<li>Poor banking access and digital infrastructure in rural areas<\/li>\n\n\n\n<li>Low digital literacy among beneficiaries<\/li>\n\n\n\n<li>Overlapping and complex subsidy structures<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Suggestions and Way Forward\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s Direct Benefit Transfer (DBT) system successfully balances fiscal prudence with social inclusion.\u00a0<\/li>\n\n\n\n<li>It offers a global model for efficient, transparent, and inclusive welfare delivery, demonstrating how direct transfers can drive both economic and social development.<\/li>\n\n\n\n<li>However, challenges like beneficiary identification issues, Aadhaar errors, limited banking access in rural areas, and low digital literacy remain.<\/li>\n\n\n\n<li>To address these, India should focus on improving data accuracy, expanding rural banking, enhancing digital infrastructure, promoting awareness, and customizing DBT models for specific regions.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: TH<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In News<\/strong><\/h3>\n<li class=\"ms-5\">India&#8217;s Direct Benefit Transfer (DBT) framework is offering valuable insights for governments worldwide revising their social protection systems.<\/li>\n<p><\/p>\n<h3><strong>The Direct Benefit Transfer (DBT) system<\/strong><\/h3>\n<li class=\"ms-5\">It was launched on January 1, 2013, to reform government welfare delivery by simplifying processes, ensuring accurate targeting of beneficiaries, reducing fraud, and facilitating faster flow of information and funds.<\/li>\n<li class=\"ms-5\">The DBT Mission, originally in the Planning Commission, was transferred to the Cabinet Secretariat in 2015 for better coordination.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/24-04-2025\/india-dbt-system-yields\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-41929","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/41929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=41929"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/41929\/revisions"}],"predecessor-version":[{"id":41953,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/41929\/revisions\/41953"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=41929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=41929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=41929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}