India's DBT System Saves â‚ą3.48 Lakh Crore, Boosting Welfare Scheme Efficiency.

National

In April 2025, a new quantitative assessment by the New Delhi-based BlueKraft Digital Foundation revealed that India’s Direct Benefit Transfer (DBT) system has enabled cumulative savings of ₹3.48 lakh crore by reducing leakages in welfare delivery mechanisms.


      - The report, supported by the Ministry of Finance (MoF), shows that subsidy allocations dropped from 16% to 9% of total government expenditure since DBT implementation, demonstrating its effectiveness in streamlining public finances.

      - The findings highlight DBT’s transformative impact on public spending efficiency, better targeting of beneficiaries, and promotion of social inclusion across various sectors.

      - A core feature of the DBT system is the JAM Trinity—Jan Dhan bank accounts, Aadhaar IDs, and Mobile numbers—which ensures direct and secure fund transfers to beneficiaries. The assessment, based on data from 2009 to 2024, highlights DBT’s impact on enhancing budgetary efficiency, promoting subsidy rationalisation, and achieving better social welfare outcomes.

Main Point :-   (i) Key findings from the assessment reveal that during the Pre-DBT Era (2009-2013), subsidies accounted for 16% of total government expenditure, amounting to Rs. 2.1 lakh crore annually, but the system suffered from significant leakages.

      (ii) In contrast, the Post-DBT Era (2014-2024) saw a reduction in subsidy expenditure to 9% of total expenditure in 2023-24, with beneficiary coverage increasing dramatically by 16 times, from 11 crores to 176 crores. Additionally, there was a COVID-19 Outlier where a temporary spike in subsidies occurred during the 2020-21 fiscal year due to emergency fiscal measures.


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