To reform the Government delivery system by simplifying and speeding up the flow of information and funds through direct benefit transfer (DBT) and by reducing fraud by reducing duplication, Direct Benefit Transfer (DBT) was launched on 1st January 2013. The rapid rollout of Aadhaar allowed cash benefits to be transferred directly to the poor.
Current Status of DBT- DBT pilot programs have shown promising results in different parts of the country. As a result, PAHAL (modified DBTL for LPG subsidy), PDS (Public Distribution System) payments in Puducherry, Chandigarh, and MGNREGA payments in Jharkhand and Bihar all fall under this heading.
Categories of schemes covered by the DBT- All welfare/subsidy schemes operating directly or through implementing agencies of all Ministries/Departments of the Government of India are covered by DBT.
In this regard, DBT applies to the following types of programs.
Cash Transfer- Government transfers cash benefits to individual beneficiaries as part of schemes or components of schemes in this category. The PAHAL program, MGNREGA program, and the NSAP program, for example.
In-kind- Transfers of goods or services from the Government to Individual Beneficiaries - This category includes schemes or components of schemes in which the Government transfers goods or services to individuals through an intermediary. Governments and their agents typically incur internal expenditures to procure goods for public distribution and to deliver services to target beneficiaries. They are provided free of charge or at a subsidized rate to individual beneficiaries.
Other Transfers- Furthermore, there is another category of transfers from the government to various non-government organizations that facilitate various government schemes to completion. Transfers to NGOs and community workers, who enable government schemes, include honoraria, incentives, etc. for the proper implementation of the schemes. They are not beneficiaries themselves, but are paid, trained, and given incentives for providing services to beneficiaries under NHM, ICDS, aided schools, and ULBs.