← All questionsGS2 · 2013 · Governance ·Direct Benefit Transfer for Welfare
MAINS 2013
GS2
10 marks

Electronic cash transfer system for welfare schemes is an ambitious project to minimize corruption, eliminate wastage and facilitate reforms. Comment.

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7 min
200 words

What the examiner wants

Comment on whether cash transfers can cut corruption and waste in welfare.

CommentGive your own view on the statement and back it with facts and examples.

Demand-wise check

  1. 1Promise: removes middlemen, fake beneficiaries, delays≈35 words
  2. 2Enablers: Aadhaar, Jan Dhan accounts, mobile (JAM)≈35 words
  3. 3Concerns: authentication failures, bank access, cash vs food inflation risk, exclusion errors≈35 words
  4. 4Evidence: LPG (PAHAL) and fertiliser examples≈35 words

Open in about 30 words and close in about 30.

Answer plan

DBT conceptAnti-corruption logicEnabling infrastructureRisksBalanced view

Where marks usually go

  • Treating DBT as a cure-all
  • No mention of exclusion errors

Draw this

  • Flow: old chain (Centre → state → middlemen → beneficiary) vs DBT (Centre → bank account)

Value addition

  • CommitteeNilekani Task Force (2011) recommended direct transfer of LPG, kerosene and fertiliser subsidies.Task Force on Direct Transfer of Subsidies, 2011
  • ReportEconomic Survey 2014-15 proposed the JAM (Jan Dhan-Aadhaar-Mobile) trinity.Economic Survey 2014-15

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