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This is an archive article published on May 5, 2013

Push DBT to other nations: ADB

The Asian Development Bank ADB should consider pushing forward Indias system of Direct Benefit Transfers DBT to other developing countries

The Asian Development Bank ADB should consider pushing forward Indias system of Direct Benefit Transfers DBT to other developing countries,said the multilateral agencys chief economist Chongyang Rhee.

I think it is a great effort. We are learning a lot from India. You are now building a bio information and then you are providing direct subsidy without any intermediary. That would significantly reduce corruption and inefficiencies, Rhee told reporters at an interaction during the 46th Annual General Meeting of the ADB.

While making a case for empowerment of people as a means of development,Rhee said that given Indias fiscal deficit,it needs to go for targeted distribution of public services.

Countries need to shift from general targeting to focused targeting approach as lions share of the subsidies are taken away by the rich, he said,adding the leakage in the current Public Distribution System PDS in India is enormous.

Earlier,the International Monetary Fund had said the DBT could result in savings of as much as 0.5 per cent of GDP. The government rolled out the DBT scheme from January 1 in 43 districts in the first phase,hoping that the Aadhaar-enabled platform would help plug leakages and improve delivery of subsidies.

 

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