In a major achievement over the past eleven years, the Direct Benefit Transfer (DBT) system under Prime Minister Narendra Modi’s government has revolutionized welfare delivery in India, resulting in cumulative savings of ₹3.48 lakh crore by curbing leakages and ensuring direct transfers to beneficiaries.
Since its inception, ₹44 lakh crore worth of benefits have been transferred via DBT. To put this scale in perspective, counting ₹1 lakh every minute would take over 833 years to reach that total.
The DBT model has significantly improved the efficiency and targeting of government subsidies. Programs with historically high leakage—such as food subsidies, MGNREGS, and PM-KISAN—have seen substantial improvements thanks to Aadhaar-linked and mobile-based transfers.
According to a report by BlueKraft Digital Foundation, the initiative has also led to a notable decline in subsidy outlays as a percentage of total expenditure, reflecting better targeting and fiscal prudence. The rising Welfare Efficiency Index (WEI) further confirms that the DBT approach is optimizing public spending while expanding social coverage.
India’s DBT experience is now seen as a global model, demonstrating how fiscal discipline and inclusive growth can go hand-in-hand. As countries worldwide seek to reform their welfare systems, India’s success offers crucial lessons in building transparent, efficient, and equitable delivery mechanisms.