Context:

In a landmark quantitative assessment conducted by the BlueKraft Digital Foundation, India’s Direct Benefit Transfer (DBT) system has been credited with delivering cumulative savings of ₹3.48 lakh crore between 2009 and 2024. This transformative gain stems from reduced leakages, tighter subsidy targeting, and improved welfare delivery mechanisms that have reshaped the architecture of public service delivery in the country.

The Scope and Significance of the Report

The report evaluates DBT performance over a 15-year period and introduces a new metric—Welfare Efficiency Index (WEI)—to holistically measure the impact of the reforms.

The WEI combines fiscal outcomes (like savings and reduced subsidies) with social outcomes (such as expanded beneficiary inclusion), offering a composite picture of system-wide welfare gains.

Between 2014 and 2023, the WEI surged from 0.32 to 0.91, indicating a nearly threefold improvement in welfare delivery efficiency and transparency.

Key Achievements

Subsidy Allocation Down, Beneficiary Inclusion Up

●        Subsidy allocation as a share of total government expenditure dropped from 16% (2009–2013) to 9% (2023–24).

●        Meanwhile, beneficiary coverage rose from 11 crore individuals in 2013 to 176 crore in 2024, marking a staggering 16-fold increase.

This demonstrates that India has not merely reduced expenditure but has optimized subsidy targeting to reach more people, more effectively.

Sectoral Impact:

Public Distribution System (PDS) –

Over 53% (₹1.85 Lakh Crore) of the total DBT savings came from the food subsidy system. By linking Aadhaar with ration cards, ghost beneficiaries and duplicate entries were weeded out, streamlining food grain distribution.

• MGNREGS : The Mahatma Gandhi National Rural Employment Guarantee Scheme achieved 98% timely wage transfers, due to DBT-enabled accountability saving over ₹42,534 Crore. This minimized delays, corruption, and ghost entries.
• PM-KISAN: The flagship PM-KISAN scheme, which supports small and marginal farmers, saved over ₹22,000 crore by eliminating 2.1 crore ineligible beneficiaries, a direct result of rigorous database validation.
• Fertiliser Subsidies: A sharp drop in fertiliser misuse was seen after DBT ensured targeted disbursement. Sales of 158 lakh metric tonnes of fertiliser were reduced, highlighting the impact of better beneficiary targeting and saving around ₹18,699.8 Crore

The JAM Trinity:

At the core of India’s DBT success is the JAM Trinity comprising:

●        Jan Dhan: Over 50 crore bank accounts opened to enable direct transfers.

●        Aadhaar: Unique biometric identification for over 130 crore people.

●        Mobile: Digital communication and transaction enablement.

Conclusion

The DBT system has rewritten the rules of welfare delivery in India. With savings of ₹3.48 lakh crore, a dramatic rise in beneficiary inclusion, and a near threefold improvement in welfare efficiency, the transformation is not just administrative—it’s foundational. As the nation moves toward deeper reforms and greater digital integration, DBT stands as a beacon of how technology and policy can come together to serve the last mile—effectively, efficiently, and equitably.