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Indian Economy - Understanding the basics of Indian economic system

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Direct Benefit Transfer Initiative Saves Rs.3.48 Lakh Crore by Reducing Leakages

India's Direct Benefit Transfer (DBT) system has achieved significant success in enhancing welfare delivery efficiency. According to a report by the Ministry of Finance, DBT has saved ?3.48 lakh crore by minimizing leakages and ensuring that subsidies reach the intended beneficiaries.

Key Highlights:

  • DBT has saved Rs.3.48 lakh crore by eliminating middlemen and reducing duplication in welfare schemes.
  • The number of beneficiaries has increased from 11 crore in 2013 to 176 crore, reflecting the system's broader reach.
  • Subsidy allocations as a percentage of total government expenditure have decreased from 16% to 9%, indicating improved fiscal efficiency.
  • The Welfare Efficiency Index has risen from 0.32 in 2014 to 0.91 in 2023, demonstrating better targeting and reduced wastage.

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