Assessing the Operational Constraints of Direct Benefit Transfers: An Empirical Investigation of PM-KISAN Scheme of India

Abstract

Direct Benefit Transfer (DBT) plays a crucial role in tackling widespread corruption and interference from middlemen, which often obstruct policy measures from reaching their intended recipients in developing countries like India. The PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) scheme, a key initiative by the Indian government, aims to offer financial support to small and marginal farmers. However, the scheme encounters several implementation challenges that diminish its effectiveness. This study investigates the constraints faced by the beneficiaries of PM-KISAN scheme through research conducted in eight Gram Panchayats in Bihar and Uttar Pradesh. Data were collected from 120 small and marginal farmers and 30 state department officials using surveys and interviews. Employing Garrett ranking, the study analyzes and prioritizes the obstacles encountered in the scheme's execution. Major issues identified include discrepancies in land area records, a complex grievance resolution process, delays in fund disbursement, and inaccuracies in beneficiary data. These constraints critically affect the scheme’s efficiency and reach. By systematically ranking these constraints based on their frequency and impact, Garrett ranking provides a clear understanding of the most pressing issues. The study offers practical recommendations for policymakers and implementers to improve the PM-KISAN scheme's effectiveness, ensuring that the benefits more accurately reach the intended beneficiaries.