- types
- 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