India's DBT System Saves ₹3.48 Lakh Crore and Boosts Welfare Efficiency
| Aspect | Details |
|---|---|
| About DBT | India's Direct Benefit Transfer (DBT) system aims to reduce inefficiencies and leakages in subsidy disbursal. |
| Launch Year | 2014 |
| Report Source | BlueKraft Digital Foundation report (2009-2024). |
| Cumulative Savings | ₹3.48 lakh crore saved from 2009 to 2024. |
| Beneficiary Growth | Beneficiaries increased 16 times, from 11 crore to 176 crore. |
| Budgetary Allocation Trends | |
| Pre-DBT Era (2009-2013) | Subsidies averaged 16% of government expenditure; ₹2.1 lakh crore allocated annually. |
| Post-DBT Era (2014-2024) | Subsidies decreased to 9% of total expenditure in 2023-24. |
| COVID-19 Outlier (2020-21) | Temporary subsidy spike due to emergency fiscal measures; efficiency rebounded post-pandemic. |
| Sectoral Impact Analysis | |
| Food Subsidies (PDS) | ₹1.85 lakh crore saved, 53% of total DBT savings; Aadhaar-linked ration card authentication. |
| MGNREGS | 98% wages transferred on time; ₹42,534 crore saved. |
| PM-KISAN | ₹22,106 crore saved by eliminating 2.1 crore ineligible beneficiaries. |
| Fertilizer Subsidies | ₹18,699.8 crore saved through targeted disbursements. |
| Correlation Findings | |
| Positive Correlation (0.71) | Strong correlation between beneficiary coverage and DBT savings. |
| Negative Correlation (-0.74) | Significant negative correlation between subsidy expenditure and welfare efficiency. |
| Welfare Efficiency Index (WEI) | |
| Components of WEI | DBT Savings (50%), Subsidy Reduction (30%), Beneficiary Growth (20%). |
| WEI Growth | Increased from 0.32 (2014) to 0.91 (2023), reflecting improved efficiency of welfare programs. |