Helped By Fertilizers, Direct Benefit Transfers Cross Rs 3 Lakh Crore Mark In FY19; 60 Per Cent Jump Over FY18
Helped By Fertilizers, Direct Benefit Transfers Cross Rs 3 Lakh Crore Mark In FY19; 60 Per Cent Jump Over FY18State Bank of India branch. (Wikimedia Commons)

One of NDA government’s most ambitious schemes direct benefit transfer (DBT) of subsidies in cash and kind crossed the Rs 3 lakh milestone in 2018-19, reports The Hindu BusinessLine (BL).

According to government data, DBT transfers amounted to Rs 3,06,260 crore last fiscal (FY19), a 60 per cent jump from 2017-18 (FY18). A total of 123.8 crore beneficiaries were reached through over 351-crore transactions.

The jump over FY18 can be attributed to the launch of DBT in fertiliser where Rs 39,230.64 crore was transferred in 2018-19.

Helps Eliminate Inefficiencies

DBT is a re-engineered government delivery system in which public goods are directly delivered to the beneficiaries, either in cash or kind. Such direct transfers are effected through the use of Aadhaar.

Former Chief Economic Advisor (CEA), Arvind Subramanian, has noted that DBT has helped eliminate “ghost beneficiaries.” “DBT is important not only for fiscal savings … if the government can deliver these services it would legitimise the state, it would arrest the ongoing trend of de-legitimisation of the state the world over,” he had stated.

Currently, DBT is used in over 434 government schemes, run by over 56 ministries. While estimates suggest that the government will save over Rs 40,000 crores through DBT, some expect that savings will reach Rs 45,000 crores.

Also Read: Why A Victory For Aadhaar Is A Victory For India’s Poor

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement