New Delhi [India], December 15 (ANI): The Department of Expenditure has been consistently improving direct benefit transfer (DBT) linkages between beneficiaries and onboarding with external systems to facilitate greater ease of living, the Finance Ministry stated on Sunday.
As part of its FinMin Year Review 2024 initiative, the Finance Ministry in a social media post on X, stated that DBT through Public Financial Management System (PFMS) supports Digital India by enabling electronic payment and receipt for Ministries and Departments in both Centre and States.
The ministry added that the IT-based Public Financial Management System (PFMS) makes a direct and significant contribution to the Digital India Initiative of the Government of India enabling Direct Benefit Transfer for the beneficiaries enrolled in various schemes under Ministries/departments in the Government of India.
It further added the DBT through PFMS aims to achieve the complete tracking of the realisation of funds from its release to credit into the bank account of intended beneficiaries and ‘Just in times’ transfer of funds.
Almost all the Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CS) are on the PFMS and all the major banks including the Reserve Bank of India (RBI) have an interface with PFMS.
Earlier in October, Finance Minister Nirmala Sitharaman highlighted that more than USD 450 billion has been transferred through Direct Benefit Transfers (DBT) to the people in the last 8 years.
“Over 51 ministries and departments in the central government deal with Direct Benefit Transfers (DBT). More than USD 450 billion have been transferred cumulatively in the last 8 years” the minister said.
She emphasized the tremendous success India has achieved in delivering welfare benefits directly to the people through digital systems.
These transfers though DBT are part of various welfare schemes aimed at ensuring that government aid reaches the people it is intended for, without middlemen or leakages.
According to the minister, around USD 40 billion has been saved from being lost to pilferage during this period.
She credited the elimination of ghost accounts and fraudulent transactions for these savings, underlining the importance of accountability when it comes to handling taxpayers’ money.
The Finance Minister described this digital initiative as a “superb lesson” in improving transparency and efficiency. She stated that the government’s efforts have ensured that every rupee is properly accounted for, thus preventing misuse and enhancing the responsible use of public funds.
The DBT system, introduced by the central government, has been widely recognized as a powerful tool in ensuring the delivery of subsidies, pensions, scholarships, and other benefits directly to the bank accounts of beneficiaries, minimizing delays and cutting down intermediaries. (ANI)
