Economics • Indian EconomyEasy
What is the primary purpose of the 'Direct Benefit Transfer' scheme implemented by the Government of India?
A. To channel government subsidies directly into the Aadhaar-linked bank accounts of beneficiaries to eliminate leakages✓ Correct Answer
B. To provide direct equity capital infusion into loss-making public sector manufacturing units
C. To collect corporate income taxes electronically through automated gateway clearing systems
D. To disburse micro-credit loans directly to agricultural cooperatives without intermediary banks
💡 Solution & Explanation
The Direct Benefit Transfer initiative aims to reform government delivery systems by transferring welfare benefits and subsidies directly into the Aadhaar-seeded bank accounts of intended beneficiaries. This mechanism minimizes intermediaries, reduces administrative leakages, and ensures timely financial assistance. Mistaking it for corporate equity infusion misinterprets its welfare-targeting design. The program is coordinated by the Cabinet Secretariat across various central and state ministries.
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