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DBT scheme disburses over Rs 43.3 lakh crore so far, Rs 6.60 lakh crore in FY25 alone

By IANS | Updated: April 21, 2025 18:47 IST

New Delhi, April 21 The direct benefit transfer (DBT) scheme has cumulatively disbursed more than Rs 43.3 lakh ...

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New Delhi, April 21 The direct benefit transfer (DBT) scheme has cumulatively disbursed more than Rs 43.3 lakh crore so far, thus redefining welfare delivery by enhancing transparency, curbing leakages and ensuring precise fund distribution.

Total direct benefit transfer (cumulative) stands at Rs 43,35,808 crore (as of April 21), according to government data.

In last fiscal (FY25), the Centre’s transfer of subsidies through the DBT reached more that Rs 6.60 lakh crore.

In February, Prime Minister Narendra Modi released the 19th instalment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme to 9.8 crore farmers, who received direct financial assistance exceeding Rs 22,000 crore through DBT without involvement of any middlemen.

According to a latest report, the DBT system has resulted in cumulative savings of Rs 3.48 lakh crore through a reduction in leakages that were taking place earlier, and a 16-fold expansion in beneficiary coverage from 11 crore to 176 crore since its launch by the PM Modi-led government.

Since the money goes directly into the bank accounts of beneficiaries, the leakage has been curbed, which has resulted in a halving of subsidy allocations from 16 per cent to 9 per cent of total expenditure.

"The DBT has redefined welfare delivery by enhancing transparency, curbing leakages, and ensuring precise fund distribution," the study stated.

This policy document evaluates a decade of data (2009–2024) to assess DBT’s impact on budgetary efficiency, subsidy rationalisation, and social outcomes.

The newly developed Welfare Efficiency Index (WEI), which quantifies fiscal and social gains, surged from 0.32 in 2014 to 0.91 in 2023, underscoring systemic improvements, the policy document states.

According to the document, despite a rise in welfare budgets from Rs 2.1 lakh crore in 2009–10 to Rs 8.5 lakh crore in 2023–24, subsidy allocations declined proportionally, reflecting DBT-driven efficiency.

Aadhaar-linked authentication eliminated ghost beneficiaries, enabling coverage expansion without proportional fiscal expenditure.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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