India's DBT Schemes Slash $40 Billion in Pilferages, FM Sitharaman Reveals

India has reportedly saved approximately $40 billion over the past eight years through its Direct Benefit Transfer (DBT) schemes, according to Union Finance Minister Nirmala Sitharaman.

Speaking at the Wharton Business School, University of Pennsylvania, during her recent visit to the U.S., Sitharaman highlighted the extensive use of DBT by over 51 ministries and departments in the central government.

The cumulative transfer via these government schemes has surpassed $450 billion during this period, she noted. "As finance minister, I need to stop the pilferage. I need to ensure every taxpayer's rupee is spent and accounted for properly. I can't have pilferages taking over," she stated.

The Aadhaar-linked DBT, launched in 2013, has been instrumental in transferring cash benefits directly to beneficiaries' bank accounts. This innovation has reduced the necessity for multiple documents and effectively eliminated duplicate or fraudulent beneficiaries.

One of the most significant initiatives under DBT is the PM-KISAN scheme, which is recognized as the world's largest. To date, more than ₹3.04 lakh crore has been disbursed to over 11 crore farmers. With the release of the 17th installment, the total amount transferred to beneficiaries since the scheme's inception is expected to exceed ₹3.24 lakh crore. This initiative leverages digital platforms for transparent enrollment and ensures that welfare funds reach farmers directly, thereby enhancing agricultural empowerment and financial inclusion.

The Pradhan Mantri Jan Dhan Yojana (PMJDY) further supports financial inclusion efforts by establishing over 523 million bank accounts, effectively integrating marginalized sections of society into the formal financial system.

The government's Aadhaar-driven approach has not only empowered citizens but also generated significant savings by purging scheme databases of millions of fake, non-existent, and ineligible beneficiaries across various ministries.

Notably, this has led to the removal of over 4.15 crore fake LPG connections and 5.03 crore duplicate ration cards, thus streamlining the distribution of essential services such as cooking gas and food subsidies.

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