The Centre is actively taking into consideration implementing direct advantage transfer (DBT) in money to eligible beneficiaries to bring in more efficiency in the important subsidy programmes, Niti Aayog vice-chairman Rajiv Kumar mentioned on Thursday.
“That’s of course very much a possibility (DBT in food and fertiliser subsidies). We have been looking at (the option) to try and improve the delivery and reduce the leakages in both these schemes,” Kumar mentioned at Idea exchange. “It’s a far more complex thing to handle both of them. When and how DBT will be implemented is something I can’t talk about at the moment. One cannot adopt a cavalier approach to this because it concerns both food security and consumption level of the vulnerable section,” he mentioned.
Unlike domestic cooking gas (LPG-Pahal), exactly where beneficiaries are defined and money provided straight to the beneficiary, subsidised meals grains are largely provided via Aadhar-authentication mechanism though fertiliser subsidy is universal in nature and subsidy quantity is paid to the manufacturer.
Harnessing the energy of Jan Dhan, Aadhaar and Mobile (JAM), DBT money in LPG-Pahal has led to a saving of Rs 71,301 crore amongst FY15 and FY20 though DBT in meals has cumulatively saved the exchequer Rs 66,897 crore (largely DBT-in-sort as money transfer not rolled out due to the National Food Security Act and issues that it could lead to deprivation). The PoS technique helped the Centre save Rs 10,000 crore in fertiliser subsidy by plugging leakages up to FY20, the official information showed.
With the Centre deciding to clear a huge chunk of arrears, the Centre’s meals subsidies are estimated to be a whopping Rs 4.2 lakh crore in FY21RE though fertiliser subsidy is projected to be Rs 1.3 lakh crore. DBT will also will remove fees connected to Food Corporation of India’s inefficiency. The division of fertilisers and the ministry of agriculture are working out the information of the DBT scheme.
On enhancing private investment in the nation to revive financial development, Kumar mentioned there is a lot to be performed to boost investor sentiment. “The government will do the lifting as far as the infrastructure and construction sector is concerned. We feel that these have sufficient multiplier effects, to encourage the private sector to come forth into their own investments,” he mentioned. Production-linked incentive (PLI) schemes worth Rs 1.97 lakh crore will support produce private investment, he added.