The direct services transfer system, launched in 2013, has become one of the most ambitious reforms in the country’s public well-being landscape. By passing from the delivery of subsidies in kind and based on an intermediary to a digital model, Authenticated Aadhaar, DBT has considerably improved the precision, scope and responsibility for well-being disbursements.
According to a quantitative analysis carried out by Shakil Bhat, main scholarship holder, Viksit Bharat, the DBT system has had a deep and measurable impact on the rationalization of subsidies and social results, reshaping the architecture of social assistance since its deployment in 2013.
Bhat, in his analysis, noted that before the DBT, well-being regimes often suffered from poor identification of beneficiaries, ghost entries and corruption through intermediaries. DBT directly attributes the rights – if they subvent, pensions or scholarships – in the bank accounts of the beneficiaries, minimizing the human interface and thus reducing corruption. Between 2009 and 2024, this mechanism saved 3.48 Lakh crosses by slowing down such leaks.
The Aadhaar -based authentication system plays an essential role in this process, ensuring that only real beneficiaries receive funds. Real -time surveillance, linked bank accounts and monitoring of digitized schemes have introduced responsibility into the subsidy pipeline.
Here is a detailed assessment of its meaning:
Impact on the rationalization of subsidies
Reduction of leaks and budgetary savings
DBT allowed a direct transfer of services to the beneficiaries verified by AADHAAR, eliminating intermediaries and ghost entries. This led to cumulative savings from RS 3.48 Lakh crosses, with food subsidies alone contributing to Rs 1.85 Lakh crores (53% of total economies) thanks to reforms of the public distribution system linked to Aadhaar (PDS).
One of the most striking results in DBT is its impact on public spending. In 2009, subsidies represented almost 16% of the total public spending. By 2024, this figure had fallen to 9%. This reduction is not due to reductions in social protection expenses but to better targeting and the elimination of redundant or fraudulent complaints.
Diagrams such as the GPL grant (Pahal), MNGREGA salary payments and the PM-KISAN have been submitted to DBT, allowing the government to reallocate funds more effectively and to reduce budgetary charges without compromising well-being objectives.
Budgetary efficiency
Despite a nearly quadrupled increase in social protection budgets (from RS 2.1 Lakh, believed in 2009-2010 to Rs 8.5 Lakh crore in 2023-24), the share of subsidies in total spending was divided by two-16% pre-DBT at 9% after the DBT, marking significant budgetary consolidation without reducing social commitments.
Targeted
Programs like PM-Kisan saw Rs 22,106 crosses in economics by eliminating 2.1 crores of non-eligible beneficiaries. Likewise, MNGREGS has made 98% of salary transfers in a timely manner, indicating a better flow of funds and administrative efficiency.
Social efficiency index (WEI)
A metric composite owner has developed in the report – which combines savings, subsidy reductions and the growth of beneficiaries – from 0.32 in 2013 to 0.91 in 2023, providing empirical validation for the efficiency of DBT in rationalizing subsidies while increasing the impact.
Impact on social results
Expansion of coverage
The awareness of beneficiaries increased by 16, from 11 crusions in 2013 to 176 crore in 2024, without proportional increase in expenses. This reflects the role of DBT in expanding access while maintaining budgetary discipline.
Equity and inclusion
By directly reaching targeted individuals, the DBT minimized corruption and arbitrary exclusion, promoting greater social equity. Salary transfers, scholarships, pensions and other rights are now more dignified and transparent.
Quarters of behavior and structural
DBT has encouraged the penetration of the bank account (via Jan Dhan) and digital commitment, reshaping the way citizens interact with the State. This had positive benefits in financial inclusion, digital literacy and civic participation.
