2025, Vol. 7, Issue 8, Part C

The Direct Benefit Transfer (DBT) system, formally launched by the Government of India in January 2013, represents a landmark reform in the delivery of social welfare schemes. Designed to ensure that subsidies, pensions, scholarships, and other welfare benefits reach beneficiaries directly, DBT leverages Aadhaar-based authentication and bank account linkages to minimize leakages, reduce corruption, and eliminate intermediaries. By doing so, it seeks to make welfare distribution more transparent, accountable, and efficient, aligning governance with the ideals of good administration and citizen-centric service delivery. In political science discourse, DBT is more than a technological innovation; it is a structural reform that redefines the relationship between the state and its citizens. Traditionally, welfare delivery in India suffered from inefficiency, leakages, and rent-seeking behaviour due to a complex network of intermediaries. DBT, through the JAM Trinity - Jan Dhan accounts, Aadhaar, and Mobile connectivity promises to bypass these inefficiencies and provide a direct interface between the state and the beneficiary. This marks a paradigm shift in the welfare state's approach, where technology becomes a vehicle for social justice and inclusive development.

Social justice, a core principle of democratic governance, demands that state interventions not only reach the poor and marginalized but do so equitably, efficiently, and with dignity. The DBT system embodies this aspiration by aiming to ensure that public funds reach their intended recipients without discrimination, delay, or dilution. By integrating financial inclusion measures, particularly through the Pradhan Mantri Jan Dhan Yojana, DBT has also brought millions of unbanked individuals, especially from rural and disadvantaged communities, into the formal banking system, strengthening their socio-economic agency. However, the debate around DBT is not without complexities. While its proponents highlight its role in reducing corruption, improving efficiency, and saving public funds, critics caution against potential exclusion errors, digital divides, and challenges in grievance redressal mechanisms. Technical glitches in Aadhaar authentication, outdated beneficiary databases, and lack of last-mile infrastructure in rural areas often result in eligible citizens being deprived of their rightful entitlements. Thus, the DBT system, while progressive, must constantly evolve to ensure that no citizen is left behind.

This article explores the extent to which DBT reflects the principles of social justice within the Indian democratic framework. It examines its contributions to transparency, accountability, and financial inclusion, while also critically assessing its limitations and the structural reforms required to make welfare delivery both efficient and equitable. By situating DBT in the larger discourse of governance and welfare politics, the article highlights whether this reform truly embodies the ideals of a just and inclusive state.