Govt's DBT System Saves USD 40 Billion: Nirmala Sitharaman

 New Delhi: The finance ministry on Sunday said that the department of expenditure has been consistently improving direct benefit transfer or DBT linkages between beneficiaries and on boarding with external systems to facilitate greater ease of living. As part of its review for the year 2024, the DBT through the public financial management system (PFMS) supports digital India by enabling electronic payment and receipt for all the ministries and departments in both the Centre and states.

In a social media post, the ministry also said that the information technology (IT)-based public financial management system (PFMS) makes a direct and significant contribution to the digital India initiative of the government, enabling the direct benefit transfer for the beneficiaries enrolled in various schemes under ministries/departments in the government. “The DBT through PFMS aims to achieve the complete tracking of the realisation of funds from its release to credit into the bank account of intended beneficiaries and ‘just in time' transfer of funds,” the ministry said.

Almost all the centrally sponsored schemes (CSS) and central sector schemes (CS) are on the PFMS and all the major banks, including the Reserve Bank of India (RBI) have an interface with PFMS. These transfers through DBT are part of various welfare schemes aimed at ensuring that government aid reaches the people it is intended for, without middlemen or leakages.

Emphasing the tremendous success in India that has achieved in delivering welfare benefits directly to the people through digital systems, earlier in October, finance minister Nirmala Sitharaman highlighted that more than $450 billion has been transferred through Direct Benefit Transfers (DBT) to the people in the last 8 years. “Over 51 ministries and departments in the central government deal with the DBT. Around $40 billion has been saved from being lost to pilferage during this period,” the minister said.

The finance minister also credited the elimination of ghost accounts and fraudulent transactions for these savings, underlining the importance of accountability when it comes to handling taxpayers’ money. “This digital initiative is a ‘superb lesson’ in improving transparency and efficiency. The government's efforts have ensured that every rupee is properly accounted for, thus preventing misuse and enhancing the responsible use of public funds,” she said.

The DBT system, introduced by the central government, has been widely recognised as a powerful tool in ensuring the delivery of subsidies, pensions, scholarships, and other benefits directly to the bank accounts of beneficiaries, minimising delays and cutting down intermediaries.