More Stories

Informist, Monday, Apr. 21, 2025

 

NEW DELHI – The government's direct benefit transfer system has helped the country save a total of INR 3.48 trillion since 2014 by plugging leakages in welfare delivery, according to a report by the BlueKraft Digital Foundation, shared by the finance ministry on Monday.

 

The report said that after the introduction of the direct benefit transfer system, subsidy expenditure decreased to 9% of total expenditure in 2023-24 (Apr-Mar), while beneficiary coverage surged 16-fold to 1.76 billion from 110 million. Prior to the direct transfer system till 2013, subsidies averaged 16% of total expenditure, amounting to INR 2.1 trillion annually

 

"The Direct Benefit Transfer system has proven to be a transformative tool for India's welfare delivery, significantly enhancing the efficiency of public spending and expanding the reach of social benefits," the report said. "The rise in the Welfare Efficiency Index underscores the success of DBT in optimising fiscal resources while broadening coverage for millions of beneficiaries."

 

The sectoral savings, particularly in high-leakage programs like food subsidies, Mahatma Gandhi National Rural Employment Guarantee Scheme, and PM-KISAN, illustrate how the system's integration of Aadhaar and mobile-based transfers has addressed inefficiencies and curbed misuse, the report said.  End

 

Reported by Shubham Rana

Edited by Deepshikha Bhardwaj

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.