Direct Benefit Transfer (DBT) scheme is the high priority and focus area of the GoI in recent times. In this context, do you think the extension of DBT to Public Distribution System (PDS) would bring in positive outcomes?
Refer – The Hindu
IAS Parliament 7 years
KEY POINTS
DBT
· With the aim of reforming Government delivery system and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud, Direct Benefit Transfer (DBT) was started.
· The Direct Benefits Transfer (DBT) simply involves transferring the subsidy amount and other benefits directly to the beneficiaries’ bank accounts instead of providing it through government offices.
· E.g. Subsidies, scholarships, etc.
Issue
· GOI has integrated DBT in various schemes such as PAHAL, MGNREGA, PMAY-G, etc.
· Various state governments are also doing pilot projects to implement DBT in Public Distribution System (PDS).
· Jharkhand is a prime example in this case.
Impact of DBT on PDS
Positive impact
· The main advantage of the DBT is that leakages are avoided as the government directly provides the fund to the beneficiary.
· Another advantage of DBT is that it helps the government to better target the beneficiary.
Challenges (Identified in the Jharkhand model)
· Difficulty in withdrawing - People waste enormous time shuttling between the banks, pragya kendras (banks insist on withdrawing cash here) and ration shops.
· At every step, there are long queues, and for many people, accessibility is also an issue, due to the location of the entity, their age or disability.
· The initial adaptation in particular is tiresome as there is no clarity on which bank account of a family gets selected for the DBT.
· Failure in Aadhaar seeding - A large numbers of people, especially among vulnerable groups such as widows and the elderly, found themselves excluded from the PDS due to cancellation of ration cards for not seeding with aadhaar.
· Even those who managed to buy rations faced considerable inconvenience due to connectivity and biometric failures.
· Notably, there was also a revival of corruption, as PDS rice meant for those who failed the biometric test was siphoned off.
Way Ahead
· Focusing on transition phase will be a right step forward.
· The transition processes such as awareness campaign, internet connectivity, seeding of all ration cards with aadhaar, grievance redressal mechanism, etc. needs to be fulfilled to ensure a positive outcome.
· The advantages of the DBT will reach the government as well as the recipients only when all the necessary steps had been taken on the transition phase.
