Direct Benefit Transfer Current Affairs - 2019
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The Government of India, the State Government of Chhattisgarh and the World Bank signed a $25.2 Million Loan Agreement to support the State’s Reforms in Expenditure Management under Chhattisgarh Public Financial Management and Accountability Program.
Chhattisgarh Public Financial Management and Accountability Program
- The reforms encompass Expenditure Planning, Investment Management, Budget Execution, Public Procurement and Accountability.
- The programme will help the state of Chhattisgarh to strengthen its Direct Benefit Transfer (DBT) and Tax Administration Systems.
- The programme will build the capacity of the State’s Human Resources and the Institutions Handling Management of Public Finances.
- The World Bank will also facilitate cross-learning from Public Financial Management (PFM) Reforms undertaken by it in the other Indian States while bringing in global experiences.
- Improvements in Public Financial Management is a key step for achieving the development potential of the state. Improvements will ensure that the State can invest more and with greater efficiency, for it’s poor and vulnerable.
- The programme which focuses on IT solutions will benefit almost 11,000 Village Panchayats and 168 Urban Municipalities in the State.
About 92 per cent households in the State of Chhattisgarh belongs to Scheduled Castes, Scheduled Tribes and Other Backward Classes. The Direct Benefit Transfers (DBTs) is being increasingly used by the Central and State Governments to channel resources to households and individuals. The Programme will support the development of systems that will facilitate inter-departmental data interaction under secured protocols and automate most of the processing and payment of DBTs in the State. Thus enhancing the efficiency of the system.
Tags: accountability • Budget Execution • Chhattisgarh • Chhattisgarh Public Financial Management and Accountability Program • DBT • Direct Benefit Transfer • Expenditure Planning • Investment Management • Other Backward Classes • Public Procurement • Scheduled Castes • Scheduled Tribes
The Union Government has saved around Rs 57,000 crore in 2016-17 through Direct Benefit Transfer (DBT) scheme under which subsidies are given directly to beneficiaries.
In 2017-18, the beneficiary base rose from 10.71 crore in 2013-14 to 35.62 crore. A total of 485 schemes have been identified from 60 ministries for the DBT.
According to government data, of the Rs 57,029 crore saved under DBT in 2016-17, the LPG subsidy scheme ‘Pahal’ alone accounted for Rs 29,769 crore savings. Besides, about Rs 14,000 crore were saved in providing subsidies directly to beneficiaries under the Public Distribution System (PDS).
The Mahatma Gandhi National Rural Employment Guarantee (MNREGA) Scheme saved Rs 11,741 crore. Rs 399 crore were saved in DBT transfers for the National Social Assistance Programme (NSAP), which deals with old age and widow pensions and among other things.
About Direct Benefit Transfer (DBT) scheme
The DBT Scheme, a major reform initiative to check graft in welfare funds was launched by then UPA Government on 1 January 2013. It aims at transferring benefits of various central government-run social welfare schemes directly to the bank accounts of beneficiaries.
Its objective is to reform Government delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of funds/information and ensure accurate targeting of the beneficiaries, reduce duplication and fraud.
DBT functions under the Cabinet Secretariat and its implementation is directly monitored by the Prime Minister’s Office (PMO). JAM Trinity i.e. Jan Dhan, Aadhaar and Mobile are DBT enablers. However, Aadhaar is not mandatory in DBT schemes. DBT scheme has been high priority and focus area of the government to bring efficiency, effectiveness, transparency and accountability in the Government system and infuse confidence of citizen in the governance.