India’s Direct Benefit Transfer (DBT) system is celebrated worldwide for its efficiency. Launched in 2013, DBT uses digital technology to send government benefits directly to the people. It covers 310 schemes across 53 ministries, offering both cash and in-kind support, like subsidised grains.
The JAM Trinity—Jan Dhan, Aadhaar, and Mobile—has been key to its success, helping to reduce corruption, cut down on leaks, and expand coverage. Thanks to DBT, India has saved about 1.14% of its GDP.
Preserving Dignity
A less discussed but vital achievement of DBT is how it upholds the dignity of the poor. By delivering benefits directly, it eliminates the demeaning process of seeking out aid, affirming the principle that everyone deserves respect, regardless of their economic status. This shift not only aids materially but also positively impacts the mental well-being of beneficiaries.
Rights-Based Approach
The DBT system is grounded in a rights-based approach to poverty, focusing on providing basic needs like food, shelter, and health with dignity. It’s not just about the aid given, but how it’s delivered—ensuring the process respects the recipients. Previously, the poor faced barriers and disrespect when accessing help, but DBT has changed that by making the state’s support more direct and respectful.
Expanding the Model
There’s a push to extend the DBT model beyond welfare, particularly into the judiciary. The first woman tribal President of India has advocated for a system where justice is as accessible as welfare benefits, highlighting the plight of poor prisoners unable to afford legal representation.
This suggests a broader application of DBT principles, aiming for a society where technology ensures equitable access to not only welfare but also justice, showing the problem, while complex, is not insurmountable.
Source: For government schemes, a path to dignity for the poor (The Indian Express, November, 28, 2023)
Explore These Topics For Further Reading
- Universal Basic Income: A Policy Perspective: Understanding the concept, benefits, and challenges of Universal Basic Income in the context of Indian economy and welfare schemes, and its implications for poverty alleviation and social security.
- Financial Inclusion and Its Importance in Indian Economy: Analysing the role of financial inclusion initiatives, including PM Jan Dhan Yojana, in promoting economic growth and reducing inequality, and their significance for UPSC aspirants.
- Digital Identity and Governance: Evaluating the impact of digital identity systems like Aadhaar on governance, service delivery, and privacy, with a focus on policy implications and ethical considerations for UPSC studies.
- Innovations in Mobile Banking and Digital Payments: Assessing the evolution and impact of mobile banking and digital payments on the Indian financial landscape, and their relevance for public administration and governance.
- Blockchain Technology in Public Sector: Exploring the potential applications of blockchain technology in public sector governance, including welfare distribution and record management, and its implications for future policy makers.
- Reforming Public Distribution System for Food Security: Reviewing the effectiveness of PDS reforms in ensuring food security, challenges faced, and the role of technology in enhancing transparency and efficiency, crucial for governance.
- E-Governance and Digital India: Discussing the impact of e-governance initiatives under Digital India on enhancing service delivery, citizen engagement, and transparency, and their importance for UPSC civil services examination.
- Comparative Analysis of Social Security Systems: Analysing different social security models across the world, their applicability in the Indian context, and lessons for policy formulation, essential for UPSC aspirants.
- Leveraging Technology in Healthcare for the Marginalised: Investigating how technology can bridge healthcare access gaps for the poor and marginalised, including policy interventions and models relevant for public administration.
- Technology’s Role in Curbing Corruption: Analysing case studies on how digital tools and fintech have been effective in reducing corruption and enhancing transparency, with a focus on governance and ethics for UPSC preparation.