Govt may extend DBT to some other schemes

Government will consider extending Direct Benefit Transfer (DBT) of subsidies to some other central schemes and also include food distribution under the scheme, the Lok Sabha was told today.
Stating this, Finance Minister Arun Jaitley also emphasised that subsidies on commodities like food and fertiliser will be continued to support the weaker sections of the society.
"As far as the products which are entirely used by the weaker sections of society are concerned, what is to be provided to them as food or fertilizer in certain cases, these are subsidies in order to protect the weaker sections of society, which will ordinarily remain," he said.

He noted that at present LPG subsidy was being credited to bank account of beneficiaries through DBT.
Replying to questions, Jaitley said, "We will definitely consider (extending DBT to other schemes). This is an alternative method. In the coming days, we will move towards it. Till the time we are fully ready with the IT backbone, it is not possible."
As regards transferring food subsidy through DBT, the minister said so far only 11 states and Union Territories have implemented the food law.

"If other states implement, then only we can think on this suggestion," he said.
With regard to petrol and diesel, Jaitley said based on the "collective wisdom of various successive governments, representing different political parties", these commodities were deregulated and the prices are driven by market forces and linked to international prices.

"The only mechanism that the governments have, both at the Centre as well as in the states, is the fiscal power of taxation. It is only that power of taxation through which the governments can vary it in order to make sure as to what price addition or alteration can take place. Beyond that, at the moment, there is no other fiscal device that the governments have," he said.
In 2014-15, the government spent over Rs 1.22 lakh crore on account of food subsidy, Rs 70,967 crore on fertiliser subsidy, and Rs 60,270 crore on petroleum subsidy.