Current Affairs - National - Discussion

India’s Direct Benefit Transfer (DBT) system has been a transformative reform in the field of welfare and subsidy delivery. Launched to curb leakages and increase the effectiveness of government spending, the DBT mechanism has helped ensure that subsidies directly reach the intended beneficiaries. Between 2009 and 2024, it led to cumulative savings of ₹3.48 lakh crore. The number of beneficiaries also increased 16-fold during this period, reflecting its broad impact. The system reduced subsidy expenditure from 16% to 9% of total government spending and introduced the Welfare Efficiency Index (WEI) to track performance, establishing India as a global leader in welfare digitization.