direct benefit transfer vs subsidy

This post talks about newest Direct Benefit transfer of LPG that was relaunched in 54 districts on 15 Nov 2014 as well as will be relaunched country wide on 1 Jan 2015. It is also a way of providing subsidy. Starting fiscal 2017-18, the Centre’s food subsidy bill is set to go down by ₹25,000 crore annually, thanks to the Direct Benefit Transfer arrangement. Issues related to direct and indirect farm subsidies Fertiliser Subsidy: Direct Benefit Transfer. Despite the remarkable success of the PAHAL scheme for delivery of LPG subsidy to beneficiary bank accounts — over Rs 50,000 crore transferred and close to … It explains how subsidy… The most common form of subsidies are producer subsidies and consumer subsidies. Direct benefit transfer does not mean no subsidy is provided. Under the direct benefit transfer scheme for cooking fuel, LPG cylinders are sold at market rates after which bank accounts of the consumers eligible for subsidy are credited with the amount of subsidy. NEW DELHI: Government today said it plans to extend the direct benefit transfer (DBT) scheme for health insurance, even as trials are on to use the programme for fertiliser subsidy to check leakage of funds. Holding an Aadhaar card is no more the essential requirement for obtaining subsidy on cooking gas in financial account. Context: A survey conducted by NITI Aayog showed that nearly two-thirds of the farmers don’t favour direct benefit transfer (DBT) of fertiliser subsidy. "Currently, subsidy is calculated as the difference between energy sold and amount collected. The present regime of fertilizer subsidy … Subsidies are commonly extended by the government to promote socio - economic policies. What this means is that government would no longer need to pay subsidy under the direct benefit transfer scheme (DBT) into the account of beneficiaries.

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