According to the latest data, the government has transferred over Rs 1.9 lakh crore worth of subsidies to beneficiary accounts under the direct benefits transfer (DBT) framework in the first nine months of current fiscal (FY19), reports The Hindu Business Line.
This amount was higher than the total amount of DBT transfers in the 12 months of the previous financial year (FY18). 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 had 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 has been 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.
In some scheme like PDS (Public Distribution System) and PAHAL (modified DBTL for LPG subsidy), transfers are made in kind. However, in other schemes like Pradhan Mantri Awas Yojana, Gramin (PMAYG) and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), transfers are made in the bank accounts of beneficiaries.
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