From the next financial year, all government schemes involving cash transfer will have to use the direct benefit transfer (DBT) channel, the Centre has said. The universalisation of DBT scheme is expected to better reach beneficiaries and check leakages.
At present, the DBT platform is being used for transferring cash benefits to the beneficiaries of just 35 schemes, including that for cooking gas. The government plans to bring the remaining welfare projects under DBT too.
“For greater and universal impact on efficiency in delivery of benefits, their timelines, along with accurately targeting of the intended beneficiaries, it is imperative that DBT may be extended beyond the transfers from the Centre directly to individuals to all schemes projects that have any component of cash benefits transfer to individual beneficiaries, from levels other than Central i.e. from state district of sub-district level or government non-government agencies,“ an official statement issued by the direct benefit transfer division of the finance ministry, said. The directive was issued to all ministries and departments.
The success of the Jan Dhan, which has made banking available to most households in the country, has given the government room to step up its direct cash transfer schemes.
Over 12 crore new accounts have been opened under this scheme in nearly seven months. Over a third of these accounts are Aadhar seeded.
This would eventually allow phasing out of inefficient product subsidies that lead to leakages. “In view of the above and to fulfil the mandate of the DBT programme to determine broad policy objectives and strategies for direct cash transfers, it has been decided that for all schemes, whether central sector schemes or centrally sponsored schemes, each ministry department will transfer funds electronically to each beneficiary,“ the finance ministry department said.
At present, the DBT platform is being used for transferring cash benefits to the beneficiaries of just 35 schemes, including that for cooking gas. The government plans to bring the remaining welfare projects under DBT too.
“For greater and universal impact on efficiency in delivery of benefits, their timelines, along with accurately targeting of the intended beneficiaries, it is imperative that DBT may be extended beyond the transfers from the Centre directly to individuals to all schemes projects that have any component of cash benefits transfer to individual beneficiaries, from levels other than Central i.e. from state district of sub-district level or government non-government agencies,“ an official statement issued by the direct benefit transfer division of the finance ministry, said. The directive was issued to all ministries and departments.
The success of the Jan Dhan, which has made banking available to most households in the country, has given the government room to step up its direct cash transfer schemes.
Over 12 crore new accounts have been opened under this scheme in nearly seven months. Over a third of these accounts are Aadhar seeded.
This would eventually allow phasing out of inefficient product subsidies that lead to leakages. “In view of the above and to fulfil the mandate of the DBT programme to determine broad policy objectives and strategies for direct cash transfers, it has been decided that for all schemes, whether central sector schemes or centrally sponsored schemes, each ministry department will transfer funds electronically to each beneficiary,“ the finance ministry department said.
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