1,100 Out of 1,200 Govt Schemes Now Under DBT, Says FM Sitharaman
Union Finance Minister Nirmala Sitharaman announced on Saturday that 1,100 out of 1,200 central and state government schemes have now been brought under the Direct Benefit Transfer (DBT) system.
New Delhi: Union Finance Minister Nirmala Sitharaman announced on Saturday that 1,100 out of 1,200 central and state government schemes have now been brought under the Direct Benefit Transfer (DBT) system.
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Direct Payment System Ensures Fund Efficiency
FM Sitharaman highlighted that this initiative ensures that funds are directly transferred to beneficiaries’ bank accounts, eliminating intermediaries and reducing delays in the process.
“Everything is going via direct payment, so there are no middlemen, no unborn children getting allowances,” she explained during her address at the 49th Civil Accounts Day celebrations in the national capital.
Biometric Verification for Fund Transfers
The Finance Minister further stated that every individual receiving the funds is required to have a biometric-verified account, ensuring that the money reaches the right beneficiary.
The Role of Public Financial Management System (PFMS)
Sitharaman emphasized the vital role played by the Public Financial Management System (PFMS) in streamlining DBT operations. According to the minister, PFMS enables the government to ensure that funds are properly allocated, and reaches the intended beneficiaries without any irregularities.
The PFMS currently serves around 60 crore beneficiaries, making it the largest financial management system of its kind globally.
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Integration with External Systems
The PFMS integrates with more than 250 external systems, including the Government e-Marketplace (GeM), Goods and Services Tax Network (GSTN), PM Kisan, and the Tax Information Network (TIN 2.0), which enables smooth financial transactions and supports the government’s goal of cooperative federalism.
Strengthening Financial Governance Across States
FM Sitharaman also mentioned that the PFMS system connects financial systems across states, working with 31 state treasuries and over 40 lakh program-implementing agencies. She highlighted that this extensive network plays a crucial role in ensuring the effective utilization of government funds.
“When we talk about PFMS integrating systems, what better example can there be of cooperative federalism?” Sitharaman remarked, praising the widespread cooperation among state treasuries and implementing agencies to ensure unified financial management across states.
Enhancing Accountability and Transparency
The Finance Minister also acknowledged the increased accountability and transparency that comes with the end-to-end digitalization of financial transactions, a step that strengthens financial governance and enhances the credibility of fund distribution.
