Pilferage stopped through DBT: FM Nirmala Sitharaman | The Financial Express

Pilferage stopped through DBT: FM Nirmala Sitharaman

Recently, the International Monetary Fund (IMF), too, hailed India’s direct cash transfer and similar social welfare schemes that are backed by technology as a “logistical marvel”.

Pilferage stopped through DBT: FM Nirmala Sitharaman
FM Nirmala Sitharaman (IE)

Finance minister Nirmala Sitharaman on Friday said the Modi government has been able to plug “pilferage” by leveraging technology to ensure direct benefit transfer (DBT) to the needy.

Delivering the NT Ramarao memorial lecture in Visakhapatnam, Sitharaman also said the government has greatly minimised the scope for rent-seeking by unscrupulous elements in the system by reducing the compliance burden for India Inc, especially small businesses and individuals. “Today, one of the major objectives of good governance has been achieved by the way we have adopted technology in ensuring benefits reach the common citizens,” the minister said.

Official data showed that more than `24.8 trillion has been transferred through direct benefit transfer (DBT) mode since 2013. Of this, the transfer of `6.3 trillion took place in FY22 alone, when, on an average, about 9 million transactions were processed daily.

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Recently, the International Monetary Fund (IMF), too, hailed India’s direct cash transfer and similar social welfare schemes that are backed by technology as a “logistical marvel”. “One thing that is striking is the use of the unique identification system, the Aadhaar,” said Paolo Mauro, deputy director of the fiscal affairs department of the IMF.

As for reducing the compliance burden, PM Narendra Modi recently said his government had scrapped about 2,000 archaic laws from the British era that required businessmen to be sent to jail over minor issues. Moreover, as FE has reported, the government is planning to axe or amend about 110 archaic, and at times bizarre, provisions in 35 laws relating to 16 ministries and departments through a new Bill in the winter session of Parliament.

‘Help reduce logistics costs’

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Earlier in the day, speaking at a separate event in Kakinada in Andhra Pradesh, Sitharaman called on states to help cut logistics costs for exporters by adopting a multi-modal approach, as envisaged under the PM GatiShakti initiative.

The Centre recently came out with a national logistics policy that aims to reduce the country’s logistics costs to 8% in five years from the current 13-14%.

“With better roads and ports coming… electronic facilitation for the customs operations coming…surely, the logistics element is being addressed little by little. State governments should also spend some time to see that logistics doesn’t become a burden on exporters,” Sitharaman said.

(With PTI inputs)

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First published on: 29-10-2022 at 02:15 IST