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India's Direct Benefit Transfers Decline 4% to Rs 6.6 Lakh Crore in FY25

Despite the decline, the system has achieved cumulative savings of Rs 3.48 lakh crore while maintaining high efficiency and broad beneficiary coverage.

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Overview

  • DBT transfers decreased by 4% year-on-year in FY25, totaling Rs 6.6 lakh crore, down from a record Rs 7.16 lakh crore in FY23.
  • Cumulative savings from DBT implementation reached Rs 3.48 lakh crore, primarily by eliminating leakages and duplicate beneficiaries.
  • Subsidy allocations have fallen from 16% of government expenditure in the pre-DBT era to 9% in FY24-25, reflecting improved fiscal efficiency.
  • The Welfare Efficiency Index has nearly tripled since 2014, standing at 0.91 in 2023, indicating significant improvements in benefit delivery and inclusion.
  • As of March 31, 2025, 1.85 billion beneficiaries are registered under various DBT schemes, highlighting the system's broad reach.