Anudeep DurishettyAIR 1 · CSE 2017 · 262 wordsTheir whole copy
Opening · a definition
Direct benefit transfer means to put subsidy money in the bank account of the beneficiary in lieu of in-kind transfer.
Body · points and prose
- Central Node: Features of DBT
- Check leakages
- Less expensive, more effective
- Agency, freedom to beneficiary
- Efficient money transfer
- Bank account
- Aadhaar linkage
Current PDS is saddled with problems:
| Procurement | Storage | Distribution |
|---|---|---|
| 1. Flawed Msp leading to monoculture | 1. Mandi infrastructure is deplorable | 1. Beneficiary identification |
| 2. Wastage of grain | 2. Grain losses due to rain | 2. Transport challenges |
| 3. Price collapse | 3. No value addition | 3. Corruption & leakage in PDS scheme |
| 4. Lack of awareness of MSP | 4. Filth, rodents |
Thus DBT is seen as effective antidote to PDS flaws.
| DBT is beneficial | DBT is harmful |
|---|---|
| 1. Efficient transfer of money | 1. Might fuel inflation |
| 2. Leads to money savings. WB report says ₹80000 cr saved till now due to Aadhar | 2. Men may use money to buy sin goods (alcohol) |
| 3. Agency to the poor to invest money | 3. Huge Financial burden on State |
| 4. Checks corruption & leakages | 4. Technological challenges such as flawed Aadhar biometrics can lead to denial of benefits |
| 5. Efficient markets | 5. DBT means abdication of State responsibility towards marketisation |
| 6. No wastage in Mandis | 6. No Financial inclusion |
Thus DBT has both positives & Negative.
Close · a way forward
As E-survey points out, DBT must be introduced in a pilot basis, and financial inclusion be strengthened for it to be beneficial to all
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