PMO asks NITI Aayog to widen ambit of DBT

The government is considering expanding the ambit of Direct Benefits Transfer (DBT). The Prime Minister’s Office (PMO) has asked the NITI Aayog to explore all government services and delivery schemes for this purpose.

• The idea is to try and provide all subsidies through an Aadhaar (the citizen identification scheme)-enabled DBT by 2017-end.

Present scenario:

DBT, at present, encompasses various government schemes including directly crediting Mahatma Gandhi National Rural Employment Guarantee Scheme payments to bank accounts. At present, about 30% of DBT is through Aadhaar; about Rs 4,000 crore is paid monthly for 57 such schemes.

• The government has met success in using the mechanism for transfers in cooking gas (liquefied petroleum gas, or LPG) and foodgrain. DBT in LPG has enabled the Centre to eliminate duplication in these accounts.
• For beneficiaries of the Public Distribution System in foodgrain, there’s an option of getting the allotment directly or being paid cash directly into their accounts, especially the new accounts under the Jan-Dhan Yojana.
•  Some new transfers, such as those for kerosene, are also planned to be through DBT, this financial year.