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LATEST NEWS UPDATES | A Tale of Trade-offs: The Anatomy of the Direct Benefit Transfers System -Aarushi Gupta and Siraj Hussain

A Tale of Trade-offs: The Anatomy of the Direct Benefit Transfers System -Aarushi Gupta and Siraj Hussain

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published Published on May 4, 2022   modified Modified on May 8, 2022

-TheWire.in

While the system was rightly designed to eliminate ghost beneficiaries, the impact of exclusion errors needs to be professionally and independently evaluated in detail.

The direct benefit transfer (DBT) system has come to dominate the discourse on public service delivery in India. The existing rhetoric around its efficacy being one of anti-corruption, cost efficiency, and elimination of middlemen. Payments under DBT are made to low-income households using an elaborate, digitised system that relies on Aadhaar to weed out “fake beneficiaries”.

However, our research shows that these leakage-reducing mechanisms have resulted in the exclusion of many deserving, financially distressed households who could not access their money in time due to back end failures in DBT. We find that about 51% of farmers who faced difficulties in getting their PM-KISAN money in East Godavari were excluded due to Aadhaar-related errors.

A joint research published by Dvara Research, Gram Vaani, and the University of Montreal in early 2021 showed that almost 84% of the total 249 DBT schemes-related complaints, reported on Gram Vaani’s Interactive Voice Response (IVR) platform between March and November 2020, pertained to the back end failures of payments.

A more recent study, the Dvara-Haqdarshak Study on Exclusion in Government to Person Payments, offers a typological view of such back end issues. The study, conducted between March and December in 2021, covered approximately 1,400 respondents in rural and semi-urban blocks of Assam, Andhra Pradesh, and Chhattisgarh. All the households seem to have faced problems in either enrolling or receiving money under one or more of the following schemes using DBT: Pradhan Mantri Kisan Samman Nidhi Yojana (PM-KISAN), National Social Assistance Programme (NSAP), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Janani Suraksha Yojana (JSY), and Pradhan Mantri Matru Vandana Yojana (PMMVY).

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TheWire.in, 4 May, 2022, https://thewire.in/political-economy/a-tale-of-trade-offs-the-anatomy-of-the-direct-benefit-transfers-system


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