Score:
5/10
Analyze what earned this score 🔥
Topper’s Copy
GS2
Governance
10 marks
"India's expanding cash transfer programmes have become an effective instrument of welfare, but they also raise concerns about fiscal sustainability." Examine this statement in the context of the recent expansion of Direct Benefit Transfers (DBTs).
Student’s Answer
Evaluation by SuperKalam
Demand of the Question
- Examine DBT as effective welfare instrument - benefits and achievements
- Analyze fiscal sustainability concerns - budgetary impact and long-term implications
- Context of recent expansion - scale, scope, and current trends
- Balanced assessment - weighing effectiveness against sustainability challenges
What you wrote:
cumulative direct benefit transfer stand at more than 51.5 lakh crore while subsidy allocation was significantly dropped from 16% to 9% due to better targeting and reduced leakage but raises concern over fiscal burden and long term sustainability.
cumulative direct benefit transfer stand at more than 51.5 lakh crore while subsidy allocation was significantly dropped from 16% to 9% due to better targeting and reduced leakage but raises concern over fiscal burden and long term sustainability.
Suggestions to improve:
- Could define DBT more comprehensively (e.g., "Direct Benefit Transfer is a mechanism to transfer subsidies directly to beneficiaries' bank accounts, eliminating intermediaries and ensuring targeted delivery").
What you wrote:
DBT and benefits →
① DBT: transferring subsidies and monetary perks directly in the bank account of beneficiary
② Improve targeting and reduced leakage (e.g. PM-KISAN, LPG subsidy)
③ economic support during distress (e.g.) during COVID-19 pandemic
④ promotes inclusion by increasing Jan Dhan account usage and strengthening JAM Trinity
[DRAWING: A triangle with the words "Jandhan", "Aadhar", and "mobile" at each vertex. The word "Jandhan" is at the top vertex, "Aadhar" at the bottom-left vertex, and "mobile" at the bottom-right vertex.]
DBT and benefits →
① DBT: transferring subsidies and monetary perks directly in the bank account of beneficiary
② Improve targeting and reduced leakage (e.g. PM-KISAN, LPG subsidy)
③ economic support during distress (e.g.) during COVID-19 pandemic
④ promotes inclusion by increasing Jan Dhan account usage and strengthening JAM Trinity
[DRAWING: A triangle with the words "Jandhan", "Aadhar", and "mobile" at each vertex. The word "Jandhan" is at the top vertex, "Aadhar" at the bottom-left vertex, and "mobile" at the bottom-right vertex.]
Suggestions to improve:
- Could highlight recent expansions (e.g., PM-KISAN benefiting 11 crore farmers with ₹2.8 lakh crore disbursed, expansion of Ayushman Bharat coverage)
- Could add specific leakage reduction data (e.g., LPG subsidy leakages reduced from 42% to under 5% through DBT)
- Could mention financial inclusion impact (e.g., Jan Dhan accounts increased from 14.7 crore to 46 crore)
What you wrote:
concerns →
① rising subsidy expenditure limits fiscal space for capital investment and social infrastructure
② growing beneficiary base creates long term budgetary commitments
③ rising welfare dependency as petty sum provided in form of 'REVADI scheme' to marginalized section.
concerns →
① rising subsidy expenditure limits fiscal space for capital investment and social infrastructure
② growing beneficiary base creates long term budgetary commitments
③ rising welfare dependency as petty sum provided in form of 'REVADI scheme' to marginalized section.
Suggestions to improve:
- Could quantify fiscal burden (e.g., food and fertilizer subsidies constitute 1.8% of GDP, total subsidy bill at 3.1% of GDP in 2023-24)
- Could discuss crowding out effect (e.g., capital expenditure as % of GDP declining due to rising revenue expenditure on welfare schemes)
- Could mention fiscal deficit implications (e.g., welfare spending contributing to fiscal deficit of 5.8% of GDP)
What you wrote:
way forward →
① Improved targeting through periodic beneficiary verification and rationalisation of subsidy
② Balance cash transfer with productive public investment in health, education, infrastructure
③ Outcome based assessment rather than taking 'one size fits all' approach
way forward →
① Improved targeting through periodic beneficiary verification and rationalisation of subsidy
② Balance cash transfer with productive public investment in health, education, infrastructure
③ Outcome based assessment rather than taking 'one size fits all' approach
Suggestions to improve:
- Could suggest specific targeting mechanisms (e.g., AI-based beneficiary verification, integration with SECC data for better identification)
- Could mention sunset clauses (e.g., time-bound welfare schemes with periodic review like PM-KISAN's 5-year assessment cycle)
What you wrote:
DBT strengthened India's social protection architecture but it should be fiscally prudent balanced approach of combining targeted welfare with productive public infra will ensure both inclusion and sustainable growth.
DBT strengthened India's social protection architecture but it should be fiscally prudent balanced approach of combining targeted welfare with productive public infra will ensure both inclusion and sustainable growth.
Suggestions to improve:
- Could link to broader economic goals (e.g., "Aligning DBT expansion with SDG 1 (No Poverty) while maintaining fiscal discipline will ensure sustainable and inclusive growth").
Your answer demonstrates good understanding of DBT's dual nature as welfare tool and fiscal challenge. However, missing recent expansion context and specific quantitative data on fiscal sustainability weakens the analysis. Strengthen with concrete examples and metrics.
Demand of the Question
- Examine DBT as effective welfare instrument - benefits and achievements
- Analyze fiscal sustainability concerns - budgetary impact and long-term implications
- Context of recent expansion - scale, scope, and current trends
- Balanced assessment - weighing effectiveness against sustainability challenges
What you wrote:
cumulative direct benefit transfer stand at more than 51.5 lakh crore while subsidy allocation was significantly dropped from 16% to 9% due to better targeting and reduced leakage but raises concern over fiscal burden and long term sustainability.
cumulative direct benefit transfer stand at more than 51.5 lakh crore while subsidy allocation was significantly dropped from 16% to 9% due to better targeting and reduced leakage but raises concern over fiscal burden and long term sustainability.
Suggestions to improve:
- Could define DBT more comprehensively (e.g., "Direct Benefit Transfer is a mechanism to transfer subsidies directly to beneficiaries' bank accounts, eliminating intermediaries and ensuring targeted delivery").
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