DIRECT BENEFIT TRANSFER AND MGNREGS

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is a National Scheme with an average yearly expenditure of more than Rs. 50,000 Crore, which is discharged through various implementing agencies like Gram Panchayats / Blocks / Line Departments. On average, 1 Crore works are taken up each year. To manage and monitor such plan; an ICT-based MIS has been created which requires handholding support on a consistent schedule with States / UTs. Further to streamline the procedures and incorporation of modules on new activities, the NREGA Soft is extemporized in light of prerequisites. Some initiatives, for example, Direct Benefit Transfer (DBT), Payments through e-FMS and Ne-FMS, Aadhaar Based Payment System and so on are being actualized. This process is done electronically. DBT is one of those which makes real-time transfers of the benefits to the beneficiaries. This paper throws lights on the usage of DBT in MGNREGS.  The objectives of this paper are to know about DBT for various schemes in India, to explain the Year wise Transfer of funds from Centre to states for MGNREGS, to examine the total number of beneficiaries through DBT in India, to know the statistics of Karnataka about DBT and to know the DBT for MGNREGS for Karnataka State. The present paper is based on secondary data collected through annual reports of various departments of both central and state governments. The period of data compilation is from the financial year 2013-14 to 2017-18. For testing of hypothesis, the statistical technique like One-Sample t-test was used. The result is showing that DBT is playing an effective role in facilitating the benefits to reach the beneficiaries with a real-time transfer of funds. The savings to the government is also appreciable.