India’s DBT revolution: Transforming welfare with technology and efficiency

India’s Direct Benefit Transfer (DBT) scheme, launched in 2013 and significantly expanded post 2014, has reshaped the country’s welfare system by combining fiscal responsibility with inclusive growth. A recent report analyzing the 15-year periods from 2009 to 2024 highlights the transformative impact of DBT on governance, spending, and service delivery.

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The scheme has led to substantial savings of Rs 3.48 lakh crore by reducing leakages and eliminating ghost beneficiaries through Aadhar-linked authentication. Even as welfare budgets rose from Rs 2.1 lakh crore in 2009-10 to Rs 8.5 lakh crore in 2023-24, the share of subsidies dropped from 16% to 9%. This shift reflects improved efficiency without reducing the reach of welfare programs. In fact, the number of beneficiaries increased from 11 crore to 176 crore which is a 16-fold jump.

Food subsidies accounted for 53% of the total savings, while flagship schemes like MGNREGS and PM-KISAN achieved high efficiency and substantial savings. The newly introduced Welfare Efficiency Index (WEI) rose sharply from 0.32 in 2014 to 0.91 in 2023, indicating major systemic progress.

Despite concerns about declining welfare spending, the data shows that targeted digital transfers have made social support more effective and equitable. Looking ahead, India must address rural digital gaps and fraud risks through AI, better infrastructure, and grievance systems to fully realize its Viksit Bharat 2047 vision.