Dbt System Delivers Big: Rs 3.48 Lakh Crore Saved, Subsidy Share Falls To 9%

The Direct Benefit Transfer system, which was launched successful 2013, has go 1 of nan astir eager reforms successful nan country’s nationalist use landscape. By shifting from in-kind and intermediary-based subsidy transportation to a digital-first, Aadhaar-authenticated model, DBT has importantly improved nan accuracy, reach, and accountability of use disbursements.

As per a quantitative study done by Shakil Bhat, Senior Fellow, Viksit Bharat, nan DBT strategy has had a profound and measurable effect connected some subsidy rationalisation and societal outcomes, reshaping nan architecture of use transportation since its rollout successful 2013. 

Bhat, successful his analysis, recovered that earlier DBT, use schemes often suffered from misidentification of beneficiaries, shade entries, and corruption by intermediaries. DBT straight credits nan entitlements—be it subsidies, pensions, aliases scholarships — into beneficiaries’ slope accounts, minimizing quality interface and thereby reducing corruption. Between 2009 and 2024, this system is estimated to person saved ₹3.48 lakh crore by curbing specified leakages.

The Aadhaar-based authentication strategy plays a captious domiciled successful this process, ensuring that only genuine beneficiaries person funds. Real-time monitoring, linked slope accounts, and digitized strategy search person introduced accountability crossed nan subsidy pipeline.

Here’s a elaborate appraisal of its significance:

Impact connected subsidy rationalisation

Leakage simplification and Fiscal savings

DBT has enabled nonstop transportation of benefits to Aadhaar-verified beneficiaries, eliminating middlemen and shade entries. This resulted successful cumulative savings of Rs 3.48 lakh crore, pinch nutrient subsidies unsocial contributing Rs 1.85 lakh crore (53% of full savings) done Aadhaar-linked Public Distribution System (PDS) reforms.

One of nan astir striking outcomes of DBT is its effect connected authorities expenditure. In 2009, subsidies accounted for astir 16% of full authorities spending. By 2024, this fig had dropped to 9%. This simplification is not owed to cuts successful use spending but owed to amended targeting and nan elimination of redundant aliases fraudulent claims.

Schemes for illustration LPG subsidy (PAHAL), MGNREGA costs payments, and PM-KISAN person been brought nether DBT, allowing nan authorities to reallocate costs much efficaciously and trim fiscal burdens without compromising connected use objectives.

Budgetary Efficiency

Despite a astir fourfold emergence successful use budgets (from Rs 2.1 lakh crore successful 2009–10 to Rs 8.5 lakh crore successful 2023–24), nan stock of subsidies successful full expenditure halved—from 16% pre-DBT to 9% post-DBT, marking a important fiscal consolidation without shrinking societal commitments.

Targeted Disbursements

Programs for illustration PM-KISAN saw Rs 22,106 crore successful savings by eliminating 2.1 crore ineligible beneficiaries. Similarly, MGNREGS achieved 98% timely costs transfers, indicating amended money travel and administrative efficiency.

Welfare Efficiency Index (WEI)

A proprietary composite metric developed successful nan report—which combines savings, subsidy reductions, and beneficiary growth—rose from 0.32 successful 2013 to 0.91 successful 2023, providing empirical validation for DBT’s effectiveness successful rationalising subsidies while expanding impact.

Impact connected Social Outcomes

Coverage Expansion

Beneficiary outreach grew 16-fold, from 11 crore successful 2013 to 176 crore successful 2024, without a proportional emergence successful spending. This reflects DBT’s domiciled successful widening entree while maintaining fiscal discipline.

Equity and Inclusion

By straight reaching targeted individuals, DBT minimized corruption and arbitrary exclusion, promoting greater societal equity. Wage transfers, scholarships, pensions, and different entitlements are now delivered successful a much honorable and transparent manner.

Behavioral and Structural Shifts

DBT encouraged slope relationship penetration (via Jan Dhan) and integer engagement, reshaping nan measurement citizens interact pinch nan state. This has had affirmative spillovers successful financial inclusion, integer literacy, and civic participation.