Here’s why Puducherry doesn’t want DBT for foodgrain -Governance Now

Here’s why Puducherry doesn’t want DBT for foodgrain

DBT for subsidised foodgrain was rolled out in 2015

GN Bureau | January 30, 2018

#foodgrain #Direct Benefit Transfer #subsidy #DBT

Here’s why Puducherry doesn’t want DBT for foodgrain

Puducherry wants to go back to the system of distributing subsidised foodgrain and doesn’t want the subsidy to be credited to the bank accounts of the beneficiaries as part of Direct Benefit Transfer.

The union territory administration has claimed the beneficiaries are not using the subsidy amount to buy foodgrain, reported Times of India.

"The chief minister (V. Narayanasamy) recently put up this proposal before union minister Ram Vilas paswan. The UT administration says people are misutilising the subsidy from central government. We can't go back on the decision unless we are satisfied with the reason cited by the UT," a food ministry official was quoted as saying.

The official added that the UT administration continued its scheme of providing 10 kg single boiled rice free per month to each family from the PDS despite the centre introducing DBT for food subsidy.

The Centre had rolled out DBT for subsidised foodgrain in Puducherry, Chandigarh and Daman and Diu in 2015.

Read: DBT Puducherry: State of confusion

Puducherry was among the first to respond to the Centre’s Direct Benefit Transfer (DBT) programme. The Union Territory claims 100 percent financial inclusion, which means each of its citizens has a bank account. It also has about 95 percent Aadhaar enrolment.

The new system also benefitted from the Supreme Court’s verdict, which ruled that a beneficiary no longer needs to produce his Aadhaar card to avail of social security schemes.

The DBT system has helped in reducing duplication, a rampant complaint in the traditional system of distributing foodgrains. In Puducherry, the system has eliminated about 25,000 bogus ration card-holders, reported Hindu Business Line.

According to available information, the total direct benefit transfer (FY 2017 -18) in Puducherry was Rs 309.66 crore. The total number of beneficiaries was 7.30 lakh while the number of schemes were 42.

DBT was started on January 1, 2013 with the aim of reforming the government delivery system by re-engineering the existing process in welfare schemes for simpler and faster flow of information/funds and to ensure accurate targeting of the beneficiaries, de-duplication and reduction of fraud.

DBT Mission was created in the Planning Commission to act as the nodal point for the implementation of the DBT programmes. The Mission was transferred to the Department of Expenditure in July, 2013 and continue to function till September 14,2015, said DBT Bharat.

First phase of DBT was initiated in 43 districts and later on 78 more districts were added in 27 schemes pertaining to scholarships, women, child and labour welfare. DBT was further expanded across the country on December 12, 2014.

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