India’s DBT: Boosting Welfare Efficiency

On 21st April 2025, the Ministry of Finance released a quantitative assessment of India’s Direct Benefit Transfer (DBT) system.

The assessment evaluates data from 2009 to 2024 to examine the impact of DBT on budgetary efficiency, subsidy rationalisation and social outcomes.

Key Findings

Significant Shift Post-DBT implementation

  • Pre-DBT Era (2009–2013): Subsidies averaged 16% of total expenditure, amounting to Rs. 2.1 lakh crore annually, with considerable leakages in the system.
  • Post-DBT Era (2014–2024): Subsidy expenditure decreased to 9% of total expenditure in 2023-24, while beneficiary coverage surged 16-fold from 11 crore to 176 crore.

The reduction in subsidy burden, despite a significant increase ....

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