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Direct benefit transfers total Rs 5.5 trillion so far in FY23

DBT total Rs 5.5 trillion so far in FY23

The amount of various subsidies and sops transferred to recipients through direct benefit transfer (DBT) has reached almost Rs 5.5 trillion so far in the current fiscal year, FY23, almost on par with FY21‘s total and falling just 13% shy of FY22’s total achievement.

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DBT total Rs 5.5 trillion so far in the current financial year: Key Points

  • The DBT transfers are anticipated to surpass the Rs 6.3 trillion attained in FY22 because to the large number of dues that are paid in the final month of the year.
  • While input costs and fertilizer prices almost doubled in just a year, farmers have received fertiliser subsidies totaling Rs 1.9 trillion so far this fiscal year, which is 53% more than the total of Rs 1.24 trillion in FY22.
  • Given that there are still more than two months until the end of FY23, the amount of fertiliser that farmers received as subsidies for the entire year would be far larger than what has been previously reported.
  • In contrast to the budget projection of Rs 1.05 trillion and the actual Rs 1.54 trillion (including dealer and manufacturer) in FY22, the overall fertiliser subsidy expense for the Centre is projected to be Rs 2.25 trillion for FY23.

How much money is transferred under PDS?

  • Under the public distribution system (PDS), recipients have received transfers of subsidies of Rs 1.5 trillion via foodgrains so far in FY23.
  • Similar to FY22, the food DBT through PDS is expected to end the year around Rs 2.2 trillion in FY23. The free grains programme was to blame for the increased food Consumption.

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Pradhan Mantri Gramin Awas Yojana-Rural:

  • The government’s assistance for Pradhan Mantri Gramin Awas Yojana-Rural (PMAY-R) recipients in FY23 would probably surpass the FY22 achievement of nearly Rs 40,000 crore, among other significant DBT programmes.
  • DBT for PMAY-R has so far this fiscal year totaled Rs 38,638 crore.
  • With targeted distributions, the DBT system has allowed the government to drastically reduce the amount it spends on social-sector welfare.
  • Because to the DBT, the government has saved a total of 2.23 trillion in expenditures as of the end of the current fiscal year.

The expansion in the adoption of Aadhaar-enabled DBT platforms for in-kind food and fertiliser subsidy distribution may be substantially responsible for the increase in DBT starting in FY19. The Aadhaar-enabled DBT platform, in the Center’s estimation, assisted in removing 41.1 million fictitious LPG connections and 39.9 million duplicate connections.

The Centre estimates that the Aadhaar-enabled DBT platform contributed to the removal of 41.1 million fictitious LPG connections, 39.9 million duplicate ration cards, and 10% pay savings due to the removal of nonexistent MGNREGA beneficiaries.

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Direct benefit transfers total Rs 5.5 trillion so far in FY23_50.1

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