Direct Benefit Transfer Scheme

Direct Benefit Transfer Scheme

DBT Mission was created in the Planning Commission to act as the nodal point for the implementation of the DBT programmes. The Mission was transferred to the Department of Expenditure in July, 2013 and continued to function till 14.9.2015. To give more impetus, DBT Mission and matters related thereto has been placed in Cabinet Secretariat under Secretary (Co-ordination & PG) w.e.f. 14.9.2015.

• First phase of DBT was initiated in 43 districts and later on 78 more districts were added in 27 schemes pertaining to scholarships, women, child and labour welfare. DBT was further expanded across the country on 12.12.2014.
• 7 new scholarship schemes and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was brought under DBT in 300 identified districts with higher Aadhaar enrolment.
• Electronic Payment Framework was laid down vide O.M. dated 13.2.2015 and 19.2.2015. This Framework is to be followed by all Ministries/ Departments and their attached Institutions/PSUs and is applicable on all Central Sector (CS)/ Centrally Sponsored Schemes (CSS) and for all schemes where components of cash is transferred to individual beneficiaries.
• Aadhaar is not mandatory in DBT schemes. Since Aadhaar provides unique identity and is useful in targeting the intended beneficiaries, Aadhaar is preferred and beneficiaries are encouraged to have Aadhaar.
• JAM i.e. Jan Dhan, Aadhaar and Mobile are DBT enablers. These provide a unique opportunity to implement DBT in all welfare schemes across country including States & UTs.

Categories of schemes covered under DBT

The scope of DBT include all welfare/subsidy schemes operated by all the Ministries/ Departments of Government of India directly or through implementing agencies, which involve cash / kind benefits’ transfers to individuals. Accordingly, the scope of DBT covers the following categories of schemes.

1. 1. Cash Transfer

Cash Transfer to Individual Beneficiary – This category includes schemes or components of schemes wherein cash benefits are transferred by Government to individual beneficiaries. Example PAHAL, MGNREGA, NSAP etc. This transfer of cash benefits from Ministry/Department to beneficiaries happens through different routes, as given below:

1. 1. • Directly to beneficiaries
      • Through State Treasury Account to beneficiaries
      • Through any Implementing Agency as appointed
      • Centre/State Governments to beneficiaries
   2. In-kind

In-kind Transfer from Government to Individual Beneficiary –

1. This category includes schemes or components of schemes wherein kind benefits are given by the Government to individuals through an intermediate agency. Typically, Government or its agent incurs expenditure internally to procure goods for public distribution and make services available for targeted beneficiaries. Individual beneficiaries receive these goods or services for free or at subsidised rates.
2. To cite an example, in Public Distribution System (PDS), Food Corporation of India (FCI) is the Government agent responsible for procurement, movement, storage and distribution of food grains to Fair Price Shops. FCI issues the food grains at subsidised rates, as fixed by the Government. The rates so fixed do not cover the full economic cost incurred by the Corporation. The difference represents the consumer subsidy for the PDS, and is paid to the Corporation by the Government of India. Similarly, Government incurs internal expenditures for provision of subsidies in kind on other products like kerosene, fertilisers, books, medicines, vaccines, etc. The matrix below through examples depicts different categories of schemes which can be grouped on the basis of the type of benefits and the type of beneficiaries.

 

Type of Benefit	Individual Beneficiary
Cash	MGNREGA, PAHAL, NSAP, Scholarships
Kind	SSA, Mid Day Meals, PDS, Assistance to State for Control of Animal Disease

1. Other Transfers
   Apart from these two categories of schemes, there is another category of transfers from the government to different non-government functionaries who help in facilitation of various government schemes till the last mile. This category includes transfers made to the various enablers of government schemes like community workers, NGOs, in the form of honorarium, incentives, etc. for successful implementation of the schemes. Example – ASHA workers under NHM, Aanganwadi workers under ICDS, teachers in aided schools, sanitation staff in ULBs, etc. are not beneficiaries themselves but they are given wages, training, and incentives for their service to the beneficiaries/community.