India’s DBT System Saves Rs. 3.48 Lakh Crore

A new report endorsed by the Ministry of Finance, highlights that India’s Direct Benefit Transfer (DBT) system has saved Rs. 3.48 lakh crore by reducing leakages in welfare delivery from 2009 to 2024.

Key Points

Welfare Efficiency Index: WEI rose from 0.32 in 2014 to 0.91 in 2023, reflecting improved financial and social outcomes.
Subsidy Rationalisation: Subsidy share fell from 16% to 9% of total expenditure, even as beneficiaries grew from 11 crore to 176 crore.
Sector-wise Savings:
- Food Subsidy: Rs. 1.85 lakh crore saved via Aadhaar-linked ration authentication.
- MGNREGS: Rs. 42,534 crore saved with 98% wages paid on time.
- PM-KISAN: Rs. 22,106 crore saved by removing 2.1 crore ineligible recipients.
- Fertilizers: Rs. 18,699.8 crore saved through targeted disbursement.
JAM Trinity Impact: Jan Dhan, Aadhaar, and mobile networks enabled transparent, direct transfers, curbing ghost beneficiaries.
COVID-19 Spike & Recovery: Temporary rise in subsidies during the pandemic was followed by swift fiscal correction.