India saves $40 billion in eight years through Direct Benefit Transfer schemes, says FM Sitharaman

FM Sitharaman says over $459 billion transferred through DBT in last 8 years

India has successfully saved an estimated $40 billion in pilferages over the past eight years, thanks to the government’s Direct Benefit Transfer (DBT) schemes, Union Finance Minister Nirmala Sitharaman announced during her recent visit to the Wharton Business School at the University of Pennsylvania.

Significant savings and financial accountability

Minister Sitharaman explained that over 51 ministries and departments are now utilizing various DBT schemes. Since the inception of these initiatives, more than $450 billion has been transferred cumulatively, showcasing the effectiveness of the program in reducing financial leakages.

“As Finance Minister, my priority is to eliminate pilferage and ensure that every taxpayer’s rupee is spent properly and accounted for,” she stated, emphasizing the need for transparency in government spending.

The role of Aadhaar-linked DBT

Launched in 2013, the Aadhaar-linked DBT allows cash benefits from various welfare schemes to be directly deposited into beneficiaries’ bank accounts. This system minimizes the need for multiple documents and effectively eliminates duplicate or fraudulent beneficiaries.

One of the flagship initiatives, the PM-KISAN scheme, has emerged as the world’s largest DBT program, disbursing over Rs.3.04 lakh crore to more than 11 crore farmers. With the release of the 17th installment, total transfers since the scheme’s inception are projected to exceed Rs.3.24 lakh crore.

Empowering farmers and promoting financial inclusion

PM-KISAN reduces farmers’ reliance on moneylenders and fosters sustainable agricultural practices. By cutting out intermediaries, the scheme ensures equitable support reaches all farmers, significantly contributing to agricultural empowerment and financial inclusion.

Additionally, the Pradhan Mantri Jan Dhan Yojana (PMJDY) has opened over 523 million bank accounts, integrating marginalized populations into the formal financial system.

Cleansing databases and enhancing efficiency

The government reports that the Aadhaar-driven approach has led to considerable savings for the public exchequer by purging scheme databases of millions of ineligible beneficiaries. Notable achievements include eliminating over 4.15 crore fake LPG connections and 5.03 crore duplicate ration cards, thereby streamlining the distribution of essential services like cooking gas and food subsidies.

Through these initiatives, India continues to make strides toward greater transparency, accountability, and financial inclusion, setting a benchmark for effective governance.

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