IMF lauds DBT scheme, calls it 'logistic marvel'
Tags: Economy/Finance Government Schemes
The International Monetary Fund (IMF) on 12 October 2022 lauded the Direct Benefit Transfer (DBT) Scheme in India and described it as a "logistical miracle" considering the country's sheer size.
The International Monetary Fund's deputy director, Paolo Mauro, said India's plan is a "logistic marvel that has helped hundreds of millions of low-income people".
He said that countries across the world should learn from the DBT scheme as it is very impressive.
He said that this program is specially targeted towards women, elderly and farmers and the technological innovation involved is commendable.
IMF Chief Economist Pierre-Olivier Gourinches said that India has emerged as a bright light at a time when the world is facing imminent prospects of recession.
Gourinchas said that India needs some significant structural reforms to achieve the ambitious target of a $10 trillion economy.
The Chief Economist lauded India's digitization efforts and termed it as a game changer.
Direct Benefit Transfer (DBT) Scheme
The process of transferring the subsidy amount directly into the account of the beneficiaries instead of providing it directly to the government offices is known as DBT.
In this context, transfer can be defined as the payment that the government makes directly to the beneficiary without receiving any return. Scholarships and subsidies are some examples.
The Direct Benefit Transfer (DBT) Scheme was introduced on 1 January 2013.
Its main objective was to reform the government's distribution system and redesign the existing process in welfare schemes by making the flow of money and information faster, safer and fraud-free.
Please Rate this article, so that we can improve the quality for you -