Direct Benefit Transfer (DBT) initiative has saved 3.48 lakh crore rupees till 2024 | Current Affairs | Vision IAS
News Today Logo

    Direct Benefit Transfer (DBT) initiative has saved 3.48 lakh crore rupees till 2024

    Posted 22 Apr 2025

    2 min read

    This has been revealed by the policy paper titled a Quantitative Assessment of India’s DBT System. 

    Other Key findings 

    • Increased coverage: Coverage of beneficiaries has increased by 16 times improving welfare delivery.
    • Welfare Efficiency Gains: Welfare Efficiency Index (WEI) rose from 0.32 (2014) to 0.91 (2023).
      • WEI assess the impact of the DBT system, it is driven by DBT Savings (50% weight), Subsidy Reduction (30% weight) and Beneficiary Growth (20% weight).
    • Subsidy share in total expenditure reduced: 16% in pre-2013 to 9% in 2023–24.
      • E.g. ₹1.85 lakh crore saved in food subsidies via Aadhaar-linked PDS. 

    About DBT Initiative

    • Genesis: Initiated in 2013.
    • Aim: Reforming Government delivery system by re-engineering the existing process in welfare schemes and ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud.
    • Implementation: Initially under the Planning Commission but now placed under Cabinet Secretariat.
    • Key Features: 
      • Aadhaar is not mandatory in DBT schemes but it is preferred.
      • DBT key enabler is JAM trinity (refer to image). 
      • Electronic Payment Framework is applicable on all Central Sector (CS)/ Centrally Sponsored Schemes (CSS) and for all schemes. 
    Image showing component of JAM Trinity
    • Tags :
    • Direct Benefit Transfer (DBT)
    • JAM Trinity
    • DBT
    Watch News Today
    Subscribe for Premium Features