The Centre has transferred subsidies and welfare benefits worth Rs 5.6 lakh crore to beneficiaries through the Direct Benefit Transfer (DBT) so far in the current financial year, indicating that disbursements are on track to approach recent peak levels if March releases follow typical year-end patterns.
Historically, DBT outflows have been uneven, often spiking in the final weeks of March due to end-of-year subsidy settlements, pending scheme releases and fiscal utilisation targets. DBT transfers touched a record Rs 7.16 lakh crore in FY23, driven largely by the free foodgrains scheme and elevated fertiliser subsidies amid global price spikes. Based on current trends, DBT outflows in FY26 could approach the Rs 6.91 lakh crore recorded in FY25.
63% of transfers made in-kind in FY26
Of the Rs 5.6 lakh crore transferred so far in FY26, about Rs 3.5 lakh crore – or 63% – was in-kind, with the remainder disbursed as cash transfers to Aadhaar-linked bank accounts. Subsidies worth Rs 1.78 lakh crore have been disbursed towards fertilisers during the current financial year, while around Rs 1.37 lakh crore has been transferred through foodgrain support under the public distribution system (PDS).
In addition, Rs 62,002 crore has been released so far for the job guarantee scheme (MGNREGS), Rs 31,793 crore for the Pradhan Mantri Gramin Awas Yojana-Rural (PMAY-R), and Rs 12,430 crore towards subsidised cooking gas.
Govt claims DBT plugged Rs 4.31 lakh crore leakages since FY15
According to the latest government data, DBT has helped plug leakages amounting to Rs 4.31 lakh crore cumulatively since FY15.
The DBT-induced savings provided government finance managers with significant headroom to improve the quality of spending and offer additional welfare benefits to eligible beneficiaries, without overly constraining the exchequer.
There are around 1.1 billion beneficiaries in the current financial year across schemes. There are about 44 in-kind schemes and 283 cash-based schemes.