The concept of Direct Benefit Transfer (DBT) is to transfer cash directly to the bank account of the beneficiary, empowering the beneficiary to spend the originally intended amount and arrest theft by corrupt politicians.
Till now no political administrator in the country could understand the spirit of DBT better than Andhra Pradesh Chief Minister YS Jagan Mohan Reddy. Seeing the suffering of the people during the 3,648 km long padyatra, he resolved to bring about a qualitative change in the lives of the poor. He announced “Navaratnalu” for the 2019 election manifesto. None of the “Navratnalu” schemes are free, as they have carefully crafted every plan for the long-term growth and development of the lives of the people. Thus, redefining DBT as development through benefit transfer.
The commitment to his promise was so strong that though the state received only 29.35% of its share in central taxes during 2020-21, against the 41% recommendation of the 15th Finance Commission, Sri Reddy was able to transfer ₹1.65 lakh crore from 2019. were capable. As part of “Navratnalu” schemes through DBT. He also ensured transparency in the beneficiary selection process through village/ward secretariats and volunteer system.
To explain the effective implementation of DBT and the resultant improvement in the lives of people such as Jagannath Ammavodi, YSR Rythu Barosa, YSR Cheyutha and YSR Asara, who account for a large part, are discussed in this column.
Education is one of the essential tools for the long-term development of people’s lives. However, based on the Education Ministry report for 2016-17, the Gross Enrollment Ratio (GER) for Andhra Pradesh in primary education was the lowest at 84.48 against the national average of 99. Against this background, Sri Reddy introduced the Ammavodi scheme.
To encourage mothers to send their children to school, the AP government is giving 15,000 per year to every mother with 75% compulsory attendance. The Ammavodi scheme saw a huge increase in GER for girls at the secondary level. While the GER in 2015-16 was 76.48 as against the national average of 80.97, it increased to 81.2 in 2019-20 as against the national average of 77.8. Apart from Ammavodi, programs like Vidya Deewana, Vasathi Deivena, Gorumudda, Vidya Kanuka, Mana-Badi Nadu-Nedu (infrastructural reforms in government schools), English medium in schools, along with BYJU to provide quality-oriented education modules to the government make partnership. Giving tabs to school students and children entering 8th standard from November 2022 to make better use of the app as well as change in curriculum at higher education level, etc. has revolutionized the education system and made it a model for the country. has helped.
Agriculture, one of the most important sectors, was in crisis as farmers did not have access to institutional credit and were forced to take loans from moneylenders at exorbitant interest rates. As a solution, Sri Reddy announced the YSR Rythu Bharosa scheme, which will transfer ₹13,500 per year to 50.58 lakh farmers with a total DBT of ₹23,875 crore over the last three years. Installments are carefully planned to help farmers during the sowing and harvesting seasons.
Despite the pandemic, due to timely DBT, the agriculture sector achieved a growth rate of 4.16%. Initiatives like Rythu Barosa Kendra (one-stop solution for farmer’s requirements – soil testing, seeds, fertilisers, crop procurement at village level), Sunna Vaddi, input subsidy, zero crop insurance, etc. contributed to the growth in agriculture. region.
Women empowerment may be a vote-catcher elsewhere, but not in Andhra Pradesh. Realizing the importance of women in the society, Sri Reddy started YSR Cheyutha, a scheme helping women in the age group of 45 to 60 years from weaker sections to set up micro-businesses in four annual installments. A total of ₹ 75,000 to 24.90 lakh is provided to women. This amount will help the existing micro-entrepreneurs to start new micro-businesses, set up small stores, buy cattle etc. To implement this, the government partnered with several banks to provide loans, on credit to provide goods to FMCG companies such as ITC, Hindustan Lever and P&G, and to purchase Amul milk. These measures along with Kapu Nestam and EBC Nestam have improved the rural economy and made women self-reliant.
Development of women and children in rural areas (DWCRASelf Help Groups (SHGs) are an important part of the rural economy, but due to the failed loan-waiver promises of the previous government, 23% of SHG accounts were overdue and 11% of SHG accounts were non-performing assets. (NPA). Sri Reddy envisioned how the rural economy could be improved and announced the YSR Aasara scheme – helping them repay their loans for four consecutive years, amounting to ₹25,517 crore. Thus, creating confidence in both women and the banking sector.
As part of the YSR Aasara scheme, the Andhra Pradesh government has deposited ₹12,758.28 crore (totaling ₹25,517 crore) into the bank accounts of 78.76 lakh women, who are part of 7.97 lakh SHGs, in two tranches.
Critics with vested interests saw these benefits as a burden on the state exchequer, but Prof. Nobel laureates such as Esther Duflo have stated that these DBTs have a more lasting effect than the short-term happiness of free will. “The focus on the welfare of the people, especially the poor and vulnerable, is highly influential. The CM tried to figure out where the needs of the people are and proposed plans for their needs and for the Sustainable Development Goals as a whole,” said Prof. Duflo.
Skilled youth, a vibrant agricultural sector, a healthy family and self-made entrepreneurs are the assets of the country. The government’s expenditure in creating these assets should fall under “capital expenditure”.
Avinash Iragavarapu works with Government of Andhra Pradesh