Day 29 – Q 3.Is Direct Benefit Transfer (DBT) a more effective instrument in ensuring inclusive growth? Critically evaluate. Also suggest the areas/ sectors/ services wherein the DBT model can be replicated.
3. Is Direct Benefit Transfer (DBT) a more effective instrument in ensuring inclusive growth? Critically evaluate. Also suggest the areas/ sectors/ services wherein the DBT model can be replicated.
क्या प्रत्यक्ष लाभ हस्तांतरण (डायरेक्ट बेनिफिट ट्रांसफर) समावेशी विकास सुनिश्चित करने में एक प्रभावी साधन है? समालोचनात्मक मूल्यांकन करें। उन क्षेत्रों / सेवाओं का भी सुझाव दें जहां डीबीटी मॉडल को दोहराया जा सकता है।
Introduction:
Direct benefit transfer(DBT) involves transfer of government benefits like subsidies directly into bank account of beneficiaries.
Body:
Government of India has re-engineered service delivery system through DBT. DBT contributes to inclusive growth in following way
- Bring transparency in the system thus minimising delays and corruption. Ex: MGNREGA- DBT has saved labours from the exploitation of contractors.
- Ghost beneficiaries are eliminated resulting into delivery of services to the most needy. Ex: PAHAL , PDS, MGNREGA.
- Financial inclusion, bringing unserved section of society into financial net. Now with people having bank accounts, they can avail other facilities like agricultural loans.
- Cash transfers in the name of vulnerable like women, girl child are likely to improve their status in the family. Ex: NFSA- conditional cash transfer.
- Reduced structural expenditure resulting from the elimination of intermediaries, leakages helps government spend more on welfare measures.
However, DBT faces challenges like Infrastructure in remote areas- Banks, ICT; financial illiteracy, exclusion errors which limit its effectiveness.
Moreover, inclusive growth has much wider meaning. It means economic growth that creates employment opportunities and helps in reducing poverty. It means having access to essential services in health and education by the poor. It includes providing equality of opportunity, empowering people through education and skill development. Thus, DBT alone with cash transfer is unlikely to ensure inclusive growth. Equal importance should be paid on improving quality of education, health services especially in rural areas.
So far DBT is implemented in various schemes like MGNREGA, PAHAL, NSAP, Scholarships, fertiliser subsidy. Areas/sectors/services where DBT can be implemented:
- MSP- price deficiency system (NITI Aayog).
- Power distribution sector (NITI Aayog).
- Public Distribution System.
Conclusion:
DBT can be one of the enabler for inclusive growth provided challenges in its implementations are addressed.
Best answer: Sania
