Finance Minister Nirmala Sitharaman Highlights India’s Success with Direct Benefit Transfers
Speech at Wharton Business School
Finance Minister Nirmala Sitharaman shared insights on India’s achievements with Direct Benefit Transfers (DBT) at the Wharton Business School, University of Pennsylvania. She revealed that over USD 450 billion has been transferred directly to people in the last 8 years.
Impact of Direct Benefit Transfers
More than 51 ministries and departments in the central government are involved in DBT, which ensures government aid reaches intended beneficiaries without middlemen. The use of digital technology has helped curb pilferage and fraudulent activities, saving around USD 40 billion.
Benefits of Digital Systems
Sitharaman emphasized the importance of eliminating ghost accounts and fraudulent transactions, highlighting the accountability in handling taxpayers’ money. The DBT system is recognized for delivering subsidies, pensions, and scholarships directly to beneficiaries’ bank accounts, reducing delays and intermediaries.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money, like a big piggy bank for the whole country. In India, this person helps decide how to spend money on things like schools, roads, and hospitals.
Nirmala Sitharaman -: Nirmala Sitharaman is a leader in the Indian government who takes care of the country’s finances. She helps make important decisions about how India spends and saves money.
Wharton Business School -: Wharton Business School is a famous school in the United States where people learn about business and how to manage money. It’s like a big school for grown-ups who want to be really good at business.
Direct Benefit Transfers (DBT) -: Direct Benefit Transfers, or DBT, is a way the Indian government sends money directly to people’s bank accounts. This helps make sure the money goes straight to the people who need it, without anyone else taking a part of it.
USD 450 billion -: USD 450 billion is a huge amount of money, like a giant pile of coins and notes. In Indian rupees, it’s even more, and it shows how much money the government has sent directly to people over the years.
Digital technology -: Digital technology means using computers and the internet to do things. In this case, it helps the government send money directly to people without any mistakes or cheating.
Pilferage -: Pilferage means stealing small amounts of something, like money. The government uses technology to stop people from taking money that should go to others.
Fraudulent activities -: Fraudulent activities are when people try to trick others to get money or benefits they shouldn’t have. The government uses technology to catch and stop these tricks.
Transparency -: Transparency means being open and clear about what is happening. In this case, it means everyone can see how the government is using money, so there are no secrets.
Accountability -: Accountability means being responsible for your actions. Here, it means the government is responsible for making sure the money is used properly and reaches the right people.
