India's DBT Revolution: Transforming Welfare Efficiency

The Direct Benefit Transfer (DBT) has enabled India to save Rs 3.48 lakh crore by preventing leakages in welfare schemes, as reported by BlueKraft Digital Foundation. Since its implementation, DBT has led to significant fiscal improvements, halving subsidy allocations while increasing beneficiary coverage. Key savings were attributed to food and wage subsidies.

The Direct Benefit Transfer (DBT) system in India has successfully secured Rs 3.48 lakh crore in savings by eliminating leakages in welfare distribution, according to a BlueKraft Digital Foundation report shared by the finance ministry. The study analyzed data from 2009-2024, evaluating DBT's impact on budgetary efficiency, subsidy rationalization, and social outcomes.

The report highlights that the implementation of DBT resulted in halving subsidy allocations from 16% to 9% of the government's total expenditure, reflecting substantial improvements in public spending efficiency. Despite expanding beneficiary coverage from 11 crore to 176 crore, fiscal efficiency improved significantly post-DBT.

Key sectoral savings were reported under food subsidies and MGNREGS, with Rs 1.85 lakh crore and Rs 42,534 crore saved respectively, thanks to Aadhaar-linked authentication and timely wage transfers. These findings position India's DBT system as a global benchmark for effective, transparent, and inclusive welfare reform.

(With inputs from agencies.)