PMO asks NITI Aayog to widen ambit of DBT

The PMO has asked the NITI Aayog to explore all government services and delivery schemes for this purpose

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. At present, about 30 per cent 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. DBT encompasses various other government schemes as well, such as directly crediting Mahatma Gandhi National Rural Employment Guarantee Scheme payments directly to bank accounts. Some new transfers, such as those for kerosene, are also planned to be through DBT, this financial year.

The Lok Sabha has already passed the Aadhaar Bill, to provide a statutory basis for the scheme to give each citizen a unique identity number, and to give legal teeth for ensuring subsidies and services directly reach the beneficiaries.