DBT scheme transforms India’s welfare landscape, achieves Rs 3.48 lakh crore in savings
New Delhi [India], April 17 (ANI): India’s Direct Benefit Transfer (DBT) scheme, introduced in 2013, has reshaped the country’s welfare delivery, setting a global benchmark for efficiency and inclusivity.
In a new report, Bluecraft has assessed the transformative impact of DBT over the past decade (2009-2024), highlighting a series of impressive achievements.
With cumulative savings of Rs 3.48 lakh crore, DBT has drastically reduced leakages, curbing the misuse of funds that previously plagued welfare programs.
By leveraging Aadhaar-linked authentication and technology, DBT has eliminated ghost beneficiaries, ensuring that subsidies are reaching those who need them most.
Over the past 15 years, India’s welfare budgets have soared—from Rs 2.1 lakh crore in 2009–10 to Rs 8.5 lakh crore in 2023–24. Despite the rise in budgets, the percentage of funds allocated to subsidies has halved—from 16 per cent to nine per cent.
This reduction in subsidy allocations has not only contributed to fiscal prudence but has also expanded the reach of welfare programs. The number of beneficiaries has grown from 11 crore to 176 crore, underscoring the success of DBT in scaling up coverage without proportional fiscal increases.
Food subsidies alone accounted for 53 per cent of the total savings (Rs 1.85 lakh crore), with other key programs such as MGNREGS and PM-KISAN showing notable successes. The MGNREGS program achieved 98 per cent timely wage transfers, and PM-KISAN generated Rs 22,106 crore in savings.
Despite criticism that DBT might have reduced welfare spending, the evidence points to a that optimises resource utilisation.
Through targeted cash transfers, India has expanded welfare coverage while reducing overall expenditure, ensuring that fiscal responsibility and social equity can coexist.
The newly developed Welfare Efficiency Index (WEI) has skyrocketed from 0.32 in 2014 to 0.91 in 2023, signalling systemic improvements in welfare delivery. DBT’s impact demonstrates how technology can streamline government spending and better serve citizens.
As India moves towards its “Viksit Bharat” goal, this analysis not only demonstrates the power of digitisation in transforming welfare but also offers a blueprint for future-ready governance.
India’s Direct Benefit Transfer (DBT) system, conceived in 2013 and aggressively scaled post-2014, has redefined welfare governance by harmonising fiscal prudence with social equity.
This policy paper synthesises 15 years of data (2009–2024) to demonstrate how DBT transformed India’s welfare architecture from a leakage-prone, subsidy-heavy model into a targeted, efficient mechanism.
Looking ahead, DBT’s success positions India to achieve its Viksit Bharat 2047 vision— a developed, inclusive nation. By redirecting savings into healthcare (Ayushman Bharat), agriculture (PM-KISAN), and rural employment (MGNREGS), DBT aligns welfare delivery with sustainable development goals.
However, challenges persist: rural digital divides, exclusion errors, and evolving fraud tactics demand continued innovation. Future steps must prioritise AI-driven fraud detection, last-mile banking infrastructure, and robust grievance redressal to ensure no beneficiary is left behind.
