India saves Rs 3.48 lakh crore with DBT system
The DBT system has saved Rs 3.48 lakh crore in India. This system has reduced the subsidy allocation from 16% to 9%. Aadhaar-linked authentication has reduced the number of fake beneficiaries, allowing coverage to expand without incurring fiscal expenditure.
India's Direct Benefit Transfer (DBT) system has saved Rs 3.48 lakh crore by reducing leakages. Since its launch by the PM Modi-led government, beneficiary coverage has increased 16 times, from 11 crore to 176 crore. This system sends money directly to beneficiaries' bank accounts to prevent leakages. Consequently, subsidy allocation has decreased from 16 percent to 9 percent of total expenditure. 'DBT has ensured accurate fund disbursement, curbed leaks, and promoted transparency,' the study noted.
At the same time, welfare delivery has been redefined with DBT. This policy document evaluates data over a decade (2009-2024) to assess the impact of DBT on budgets, subsidies and social outcomes. The policy document states that the Welfare Efficiency Index has increased from 0.32 in 2014 to 0.91 in 2023. This index measures fiscal and social benefits.
According to the document, despite an increase in the welfare budget from Rs 2.1 lakh crore in 2009-10 to Rs 8.5 lakh crore in 2023-24, there has been a decline in subsidy allocation, which shows the success of DBT. According to the document, food subsidy accounts for 53 per cent of the total savings, while Rs 22,106 crore was achieved through timely wage transfers under programmes like MGNREGA and PM-KISAN. Aadhaar-linked authentication helped reduce fake beneficiaries, thereby expanding coverage without fiscal expenditure.