The transfer of subsidies and welfare benefits through the Direct Benefit Transfer (DBT) system helped the government plug leakages worth Rs 83,064 crore in FY25, taking the Centre’s cumulative savings via this route to Rs 5.14 lakh crore, according to the latest government data.
These savings have given government finance managers greater fiscal space to improve expenditure quality and extend additional welfare benefits to eligible beneficiaries without placing undue pressure on the exchequer.
To put the scale of these savings in perspective, the cumulative DBT-related savings between FY15 and FY25 exceed the Centre’s total expenditure of about Rs 4.5 lakh crore on the flagship Mahatma Gandhi National Rural Employment Guarantee Scheme (now remaned G-RAM-G) during the last five years.
ALSO READWorked for two employers last year? This common ITR mistake could trigger a tax notice
PDS and MGNREGS Lead
In FY25 alone, the government saved more than Rs 63,000 crore by eliminating duplicate, fake and non-existent ration cards. Another Rs 16,829 crore was saved by removing fake and duplicate MGNREGS job cards. Additional savings accrued from identifying and deleting ineligible beneficiaries across scholarship and other social welfare programmes.
Since coming to power in FY15, the Narendra Modi-led National Democratic Alliance (NDA) government has expanded DBT coverage across all major welfare schemes. In FY26, DBT transfers touched a record Rs 7.51 lakh crore in 328 schemes. Since FY15, nearly Rs 51.5 lakh crore has been transferred directly to beneficiaries through cash transfers into bank accounts as well as in-kind benefits such as food grains and fertilisers.
Of the total DBT-enabled savings of Rs 5.14 lakh crore, the removal of 63.6 million fake ration cards under the Public Distribution System accounted for Rs 3.13 lakh crore, or about 61% of the total savings.
The deletion of 13.2 million fake and duplicate MGNREGS job cards generated savings of Rs 74,888 crore. Similarly, the removal of 40.9 million fake beneficiaries and 23.8 million non-subsidised LPG consumers—including voluntary surrenders—led to cumulative savings of Rs 74,031 crore as of March 31, 2025.
ALSO READBest Motilal Oswal funds: These 3 schemes outperform their benchmarks by up to 10%. Here’s what risk metrics say
PM-KISAN and Fertiliser
Further, the government saved Rs 22,106 crore by removing 21.17 million ineligible beneficiaries from the PM-KISAN scheme. A reduction of 158.06 lakh metric tonnes in fertiliser sales to retailers also yielded savings of Rs 18,700 crore.
The adoption of DBT, along with just-in-time fund release and tighter control over leakages, has significantly improved the efficiency of government spending. This has contributed to a multi-fold increase in the Centre’s capital expenditure in the post-pandemic period while also helping contain borrowing costs.
TOPICSdirect benefits transferThis article was first uploaded on June twenty-five, twenty twenty-six, at twenty-two minutes past two in the night. © The Indian Express (P) Ltd