Direct Benefit Transfer: DBT Helped Government Save INR 3.48 Lakh Crore by Plugging Leakages in Welfare Delivery, Says Report
New Delhi, April 21: The Direct Benefit Transfer (DBT) has helped India achieve cumulative savings of Rs 3.48 lakh crore by plugging leakages in welfare delivery, according to a report by BlueKraft Digital Foundation. The report, which was shared by the finance ministry, evaluated data from 2009 to 2024 to examine the impact of DBT on budgetary efficiency, subsidy rationalisation, and social outcomes.
“India’s DBT system has helped the country achieve cumulative savings of Rs 3.48 lakh crore by plugging leakages in welfare delivery. The report also finds that subsidy allocations have been halved from 16 per cent to 9 per cent of total government expenditure since the implementation of DBT, reflecting a major improvement in the efficiency of public spending,” the report said. DBT Helped India Save Rs 3.5 Lakh Crore, Which Otherwise Would Have Leaked: Report.
According to the report, the data on subsidy allocations showed a significant shift post-DBT implementation, highlighting improvements in fiscal efficiency despite a surge in beneficiary coverage. In the pre-DBT era (2009-2013), subsidies averaged 16 per cent of the total expenditure, amounting to Rs 2.1 lakh crore annually, with considerable leakages in the system. In the post-DBT era (2014-2024), subsidy expenditure decreased to 9 per cent of total expenditure in 2023-24, while beneficiary coverage surged 16-fold from 11 crore to 176 crore.
As per the report, Rs 1.85 lakh crore was saved under the food subsidies (PDS), which accounted for 53 per cent of total DBT savings. This was largely due to Aadhaar-linked ration card authentication. In MGNREGS, 98 per cent of wages were transferred timely, leading to savings of Rs 42,534 crore through DBT-driven accountability. Under PM-KISAN, use of DBT has helped save Rs 22,106 crore by deleting 2.1 crore ineligible beneficiaries from the scheme.
Under fertilizer subsidies, sale of 158 lakh tonnes of fertiliser were reduced, saving Rs 18,699.8 crore through targeted disbursement. “These sector-specific savings highlight DBT’s disproportionate impact on high-leakage programs, such as food subsidies and wage schemes like MGNREGS. The system’s role in biometric authentication and direct transfers has been crucial in improving efficiency and curbing misuse,” said the report. Finance Minister Nirmala Sitharaman Says Over USD 459 Billion Transferred Through Direct Benefit Transfers in Last 8 Years.
The report said India’s experience with DBT presents a compelling case for the efficacy of direct transfers in fostering both economic and social development. “The lessons learned from this success story can guide global efforts to make welfare systems more efficient, transparent, and inclusive,” it added.
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