Economic Survey 2013: Direct Benefit Transfer scheme not to substitute for delivery of public services

NEW DELHI: The Direct Benefit Transfer (DBT) scheme will not substitute entirely for delivery of public services for now and it will also not replace food and kerosene subsidies, Economic Survey for 2012-13 today said.

"The DBT scheme will not substitute entirely for delivery of public services for now. It will replace neither food and kerosene subsidies under the TPDS nor fertiliser subsidies," it said.

The survey further said the DBT scheme is designed to improve targeting, reduce corruption, eliminate waste, control expenditure, and facilitate reforms.

The plan was introduced on January 1, 2013 with seven schemes in 20 districts.

"India has embarked on a DBT scheme in selected districts wherein it has been envisaged that benefits such as scholarships, pensions, and Mahatma Gandhi National Rural Employment Guarantee Act ( MGNREGA) wages will be directly credited to the bank or post office accounts of identified beneficiaries," the survey said.

It further said the benefits of DBT will reach the target groups faster and minimise inclusion and exclusion errors as well as corruption that are associated with manual processes.

Meanwhile, Chief Economic Advisor Raghuram Rajan today said the DBT scheme could reduce government's expenditure.

Recently, Finance Minister P Chidambaram had said the government is determined to extend the scheme, currently being implemented in 51 districts, to more than 700 districts by this year.