India’s DBT system saves Rs. 3.48 lakh crore and enhances welfare efficiency

Current Context: On April 21, 2025, the Indian government announced that the Direct Benefit Transfer (DBT) system had saved a cumulative ₹3.48 lakh crore by eliminating leakages and fraud in welfare schemes.

Key points:

• Efficiency Improvement: Subsidy expenditure dropped from 16% to 9%, highlighting better financial management.
• JAM Trinity Implementation: Introduced in 2014, combining Jan Dhan, Aadhaar, and mobile technology for seamless welfare distribution.
• Outreach Expansion: Beneficiary numbers grew from 11 crore in 2013 to 176 crore in 2025, showcasing increased inclusivity.
• Major Schemes: Initiatives like PM-KISAN, MGNREGS, and PAHAL have seen targeted savings through DBT mechanisms.

Question:

Q.1 How much cumulative savings has the Direct Benefit Transfer (DBT) system generated as of April 21, 2025, according to the Indian government?
a) ₹1.5 lakh crore
b) ₹2.7 lakh crore
c) ₹3.48 lakh crore
d) ₹4.6 lakh crore

Answer: c) The DBT system has eliminated leakages and fraud, resulting in cumulative savings of ₹3.48 lakh crore as of April 21, 2025.