• types
    • in KIND
      • food
      • fertilizer
    • in CASH
      • NREGA
      • PM KISAN
  • to overcome weakness in implementation of welfare schemes

Advantage

  • real time
  • corruption minimized
  • via Aadhar identification, 1cr fake beneficiaries from PDS remove

Challenges

  • depends on development of digital public infra eg. banking, UPI
  • needs universal coverage
    • 34% workers not registered to receive benefits
  • technical problems
    • SC said mismatch of fingerprint shouldn’t deny PDS benefit
  • only short term solution (alleviation, not removal)
  • high opportunity cost; most state budget goes on financing DBT
  • tax increases
    • crowding out investment
    • if borrowing money -> debt trap

Solutions

  • short term
  • focus on long term investment in social, phy infra