Prime Minister Narendra Modi recently discussed his government’s efforts to prevent fund wastage in India during an interview with American podcaster Lex Fridman. He highlighted how his administration implemented the Direct Benefit Transfer (DBT) system to eliminate fake beneficiaries and ensure that welfare funds reach the right people. This system has saved India nearly ₹5 lakh crore by plugging financial leakages.
Eliminating Fake Beneficiaries
When PM Modi took office in 2014, he noticed that a significant amount of government welfare funds were being misused. Many benefits were being claimed by fake or non-existent individuals, allowing corrupt middlemen to siphon money from the system. To address this, his government introduced the DBT model, which directly transfers welfare payments into the bank accounts of legitimate beneficiaries.
By March 2023, the DBT system had already saved ₹3.48 lakh crore. With an estimated ₹64,000 crore saved each year, the total savings now stand at nearly ₹5 lakh crore, according to senior officials.
Comparison with the US DOGE Programme
PM Modi pointed out that this model aligns with the goals of the DOGE (Digital Optimized Government Efficiency) programme in the United States, recently introduced under President Donald Trump. The DOGE initiative, led by Elon Musk, discovered that social security benefits in the US were still being paid to deceased individuals, much like how India previously faced issues with fake welfare claims.
Impact of DBT on Various Welfare Schemes
The Aadhaar-based DBT system has brought transparency across multiple schemes by removing duplicate and fake beneficiaries. Some key achievements include:
- MGNREGA (Rural Employment Scheme): In 2022-23, the removal of 7.1 lakh fake job cards led to savings of ₹42,534 crore.
- LPG Subsidy: The elimination of 4.15 crore duplicate or inactive LPG connections helped save ₹73,443 crore.
- Food Subsidies & Ration Cards: Fake ration cards were removed, ensuring only eligible families received food subsidies.
Conclusion
The DBT model has transformed India’s welfare system by preventing leakages and ensuring that government funds reach the intended beneficiaries. By leveraging technology and Aadhaar-based verification, the Modi government has successfully stopped wastage worth ₹5 lakh crore, setting an example for other countries looking to improve efficiency in welfare distribution.
