Direct Benefit Transfer (DBT)

Direct Benefit Transfer (DBT)

Subject – Economy

Context – DBT beneficiaries’ number hits record 71 cr so far in FY22

Concept –

• The number of beneficiaries receiving food grains under the Public Distribution System (PDS) through Direct Benefit Transfer (DBT) has reached a record high of around 71 crore so far in the current fiscal, according to data available at the DBT portal.
• Under the Targeted Public Distribution System (TPDS), the government allocates food grains (wheat and rice) as per the National Food Security Act, 2013, in case of households covered under the Antyodaya Anna Yojana.
  • Food grains are provided at uniform subsidised prices of ₹3/2/1 per kg for rice/wheat/coarse grains, respectively. Since the Covid pandemic broke, additional food grains (5 kg/person) are being provided free of cost.
• The government has identified about 81.3 crore beneficiaries (62.5 crore rural and 18.8 crore urban) under the National Food Security Programme (NFPS).
  • Among these beneficiaries, about 70 crore are classified as members of priority households who are entitled to 5 kg food grains per person per month.
• There is also an option of receiving subsidy amount in cash in lieu of food grains.
• The pandemic has not only resulted in a fall in income for urban and rural households but has also resulted in an increase in healthcare expenditure for them.
• DBT scheme has been introduced to overcome the deficiencies of the PDS for those who were not getting benefits because they had to pass through the various intermediaries who caused leakages and delays. In recent years it has recorded very high transfers to the marginalised section which has led to a reduction of poverty and availability of cash during pandemic.
• Low accessibility to banking service and low level of awareness of the scheme are major hindrances.
• As on date, a total of 311 schemes under 54 Ministries are covered under this scheme.
  • Of these, seven scheme groups — Subsidy for LPG Cylinder (PAHAL), Mahatma Gandhi National Rural Guarantee Scheme (MGNREGS), National Social Assistance Programme (NSAP), Scholarship Scheme, Pradhan Mantri Awas Yojana – Gramin (PMAYG), Public Distribution System (PDS) and Fertiliers — are the important ones.
  • The remaining are clubbed under ‘Others’.
    • These include schemes such as Livestock Health and Diseases Control, Swachh Bharat Mission Gramin, Atal Pension Yojana, Varishtha Pension BimaYojana, Pradhan MantriVayaVandanaYojana, DeenDayalUpadhyayGrameenKaushalya Yojna, Khelo India, Project Tiger, and Project Elephant.