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PDS biggest saver for government in DBT in 2019-20

As much as Rs 19,263 cr of savings have accrued till end-December due to the DBT-linked scheme, the govt said.

, ET Bureau|
Last Updated: Jan 24, 2020, 03.22 PM IST
The central government has pegged the cumulative savings under DBT since 2014 at Rs 1.7 lakh crore.
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NEW DELHI: The Public Distribution System (PDS) has brought the biggest savings under Direct Benefit Transfer (DBT) of subsidies so far in the ongoing fiscal year, accounting for nearly 70% of the money saved by the government under the DBT scheme.

The government is claiming that it saved nearly Rs 28,700 crore in the first nine months of 2019-20, by transferring a host of subsidies directly into the bank accounts of the beneficiaries. As much as Rs 19,263 crore of these savings till end-December have accrued due to the DBT-linked PDS, under which duplicate and fake ration cards are being eliminated to plug leakage of subsidy, government officials said.

The central government has pegged the cumulative savings under DBT since 2014 at Rs 1.7 lakh crore.

The total subsidy pay-out under LPG PAHAL scheme has seen a major dip in this financial year, which is significant since this subsidy has been one of the biggest in terms of the money paid.
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Under this, the government paid just about Rs 10,000 crore in the first nine months of this fiscal year, as per the DBT portal, compared with Rs 40,000 crore in the whole of 2018-19. This has led to the total DBT payout in 2019-20 coming in at Rs 2.08 lakh crore so far this fiscal year from a record Rs 3.3 lakh crore in 2018-19.

Till the start of this financial year, the LPG PAHAL subsidy accrued the maximum savings for the government under DBT, but the PDS has now overtaken it in this aspect.

Cumulative savings under PDS since 2014 now stand at Rs 66,986 crore, compared with Rs 65,661 crore from LPG PAHAL, as per government figures. In the ongoing financial year, the government claims to have saved Rs 6,062 crore by transferring LPG PAHAL subsidy into the bank accounts of people through DBT. Under MGNREGA, it has claimed savings of Rs 3,371 crore so far this fiscal year.

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