The system of direct benefits, which was launched in 2013, has become one of the most ambitious reforms in the country’s public care scene. By shift from the delivery of regular and mediator support to the first digital model, the authentic Aadhaar, DBT has significantly improved the accuracy, accountability and accountability of the Welfare Bank.
According to the quantitative analysis conducted by the Shakil Bhat, a great colleague, VIKSIT BHARAT, DBT has a profound and measurable effect on both the rationalization of support and social results, while reshaping the structure of social welfare delivery since 2013.
Bhatt found, in his analysis, that before DBT, luxury plans often suffered from identifying beneficiaries from beneficiaries, ghost entries and corruption by mediators. DBT is attributed directly to the entitlements – whether it is subsidies, pensions or scholarships – to bank accounts of the beneficiaries, reducing the human interface and thus reducing corruption. Between 2009 and 2024, it is estimated that this mechanism has provided 3.48 rupees by curbing such leaks.
The Aadhaar authentication system plays an important role in this process, ensuring that only real beneficiaries get money. Actual monitoring, related bank accounts, and tracking digital plans, led to accountability through the support pipeline.
Here is a detailed evaluation of its importance:
Impact on rationalization of support
Reducing leakage and financial savings
DBT enabled the direct transmission of the benefits to the beneficiaries of Aadhaar, eliminating brokers and ghost entries. This has led to cumulative savings of 3.48 rupees of Rs.
One of the most amazing DBT results is its effect on government spending. In 2009, the subsidies accounted for nearly 16 % of the total government spending. By 2024, this number decreased to 9 %. This reduction is not due to discounts in spending on social welfare, but because of the better targeting and eliminating excess or fraudulent claims.
Persons such as LPG (paral), MGNREGA and PM-KISAN wage payments under DBT, allow the government to re-allocate money more effectively and reduce financial burdens without compromising the welfare goals.
Budget efficiency
Despite the rise of nearly four times in the social welfare budgets (from 2.1 rupees of Cham Ruphra in 2009-20 to 80 to 8.5 rupees in 2023-1024), the share of subsidies in total spending decreased by half-from 16 % before the two squares to 9 % after the immediate manager, on the occasion of a significant important unification without volatility of social obligations.
Targeted payments
Programs such as PM-Kisan 22,106 rupees have seen savings by eliminating 2.1 unqualified rupees. Likewise, MGNREGS has made a timely 98 % wage transfers, indicating improving money flow and administrative efficiency.
Social Welfare Efficiency Index (WeI)
A special complex scale developed in the report – which combines savings, support cuts, and the growth of the beneficiary – ranges from 0.32 in 2013 to 0.91 in 2023, providing the experimental verification of DBT effectiveness in rationalizing support while expanding the effect.
Impact on social results
Covering expansion
The beneficiary awareness of 16 times, from 11 rupees in 2013 to 176 rupees in 2024, without a relative rise in spending. This reflects the role of DBT in expanding access while maintaining financial discipline.
Arrows and comprehensiveness
By arriving directly to the targeted individuals, DBT reduces corruption and arbitrary exclusion, which enhances more social stocks. Wages, scholarships, pensions, and other benefits are now delivered in a more dignified and transparent way.
Behavioral and structural transformations
DBT encouraged penetration of the bank account (via Jan Dhan) and digital participation, to reshape the way citizens interact with the state. This was indirectly positive in financial inclusion, digital literacy, and civil participation.
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