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DBT Mission

Cabinet Secretariat

Social Protection
Programs in India
Challenges and Emerging Solutions
Presented by:
Mr. Peeyush Kumar
Joint Secretary, Direct Benefit Transfer Mission
Cabinet Secretariat
Government of India
DISCLAIMER: This presentation does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot
be held liable for its contents.

Introduction
India has been historically a country with strong socialist ideals
Providing a Universal Social Security Net has been an integral part
of policy discourse, more particularly since independence
Policy interventions in India have been mainly focusing on:
o Securing basic needs of the people, especially of the marginalized sections
like women & children, minorities etc.
o Universalizing education & health services
o Enhancing food security

o Providing basic housing


o Generating employment and many more
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Federal Structure
Federal structure of the Indian polity results in a large number
of social welfare and subsidy Schemes being implemented at various
levels:
The Central Government spends about USD 50
billion (2% of GDP or Rs. 3 lakh crore) in Welfare &
Subsidy programs
Provincial Governments implement their own
welfare Schemes amounting to a budget of about
USD 100 billion (4% of GDP or Rs. 6 lakh crores)

Welfare Schemes are also jointly funded by both


the Centre & States
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Problems
Outdated and ill-designed
architecture of the social
welfare programs

Delivery mechanisms
not robust

Weak monitoring and


feedback mechanisms

Duplication of Schemes
at various levels
4

Outcomes

In spite of large
resources devoted for
social welfare , limited
success in achieving
desired outcomes

High administrative
costs

Outcomes

Delays in
benefit delivery

Ill targeting, exclusion


and inclusion errors
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The Game Changer

Direct Benefit Transfer Initiative


Major reform in Governments benefit design and delivery
mechanism
Direct Benefit Transfer (DBT) initiated in 2013 - Envisages
transfer of cash/benefits directly to beneficiaries

DBT is being universalised to all welfare and subsidy programs of


the Government and would redefine the Government-topeople interface
Has already brought in huge savings across welfare and subsidy
schemes which are on the DBT platform
Expansion of the social security net is now possible, with
better outcomes
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JAM trinity
The DBT enablers
Jan Dhan Yojana Flagship program for
Financial Inclusion
o Nearly 40 % Indians did
not have bank account
and Nearly 6 lakh
villages unbanked
o 19.34 crores accounts
opened. 26,956 crore
deposits mobilised and
is on going
o Enables Government
benefits to be
transferred directly
to the bank accounts
of beneficiaries

Aadhaar (Targeted
Delivery of Financial and
Other Subsidies, Benefits
and Services) Act 2016
o Every Resident is entitled to
get Aadhaar, a card having
unique 12 digit individual
identification number,
Resident defined as Individual
residing in India > 182 days
o Empowers Government to use
Aadhaar for identifying
individuals for transfer of
benefits

Mobile - Increasing
penetration of mobile
among the population
o Enables seamless
flow of information
to people,
particularly about
the transfer of
Government
benefits to peoples
bank accounts

o Results in accurate
targeting and
authentication of
beneficiaries
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Present Status
May
2016

74 Schemes on DBT

Status of Key Components

> 200 Mn

Mar
2016

Aadhaar Bill passed in Parliament


Expanding the Scope of DBT
o Cash Transfers to individual beneficiary
o In kind transfer to individual beneficiary
o Transfers made to various enablers of
Govt. schemes

Feb
2015

All Central Schemes (cash disbursed to


individuals)
All districts

Dec
2014

34 Schemes
+ All districts
+ NREGA (300 districts)

Jan
2013

27 schemes
121 districts

~100%

bank a/c opened Household covered

A
M

> 1 Bn

> 80 %

enrolments

of population

> 1 Bn
subscribers

> 125 Mn
Smartphone users

Key Schemes under DBT


> 140 Mn beneficiaries
All Central Govt. scholarships

Being launched in 26 districts


from 1st April 2016
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Major Challenges in DBT Implementation &


Emerging Solutions
Challenges

Last mile service delivery


Large proportion of villages uncovered/inadequately covered in terms of financial
infrastructure
Poor network connectivity

Emerging solutions
Enhancing last mile delivery through about 250 thousand Gramin Dak Sevaks (
Rural Post Helpers) and proposed 130 thousand Micro ATMs in rural Post Offices
Leveraging existing infrastructure like 120 thousand Common Service Centres,550
thousand lakh FPS, more than 100 thousand Co-op. Societies to expand coverage
Promotion of mobile based payment platform for DBT
Operationalization of India Post Payment Bank & other Payment Banks in 2016-17
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The next step


Social Security Platform
A Governance tool with regularly
updated data, having linkages
with all existing databases across
departments at State and Centre
Provides base beneficiary data
for any new scheme to be launched
Built in mechanisms for updating
Individual & Household lifecycle
information- birth, death,
migration, split in household

Helps in avoiding duplication


of efforts (updating individual
databases)
Aggregator of Individual &
Household Benefits
Database to be J A M
embedded

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Thank
You

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