Kerala welfare pensions: CAG had flagged problems in direct-to-home payments three years ago
The Kerala government is transitioning to a direct benefit transfer (DBT) system for social security pensions, following long-standing recommendations from the CAG. This shift aims to replace the previous direct-to-home distribution method, which was flagged for lack of transparency and accountability.
Why it matters
This move represents a significant administrative reform in how social welfare funds are managed and distributed to millions of beneficiaries.
The Kerala government’s decision to shift fully to the direct benefit transfer (DBT) mode for the distribution of social security and welfare fund pensions comes three years after the Comptroller and Auditor General of India (CAG) flagged problems with the direct-to-home (DTH) system of distribution executed through primary agricultural credit societies (PACS).
Finance Department data also show that Kerala has been spending crores of rupees every year on incentives paid to individuals who distribute the pensions to homes under DTH via the PACS route.
In September 2023, the CAG, in a report submitted to the Kerala Legislative Assembly, had recommended that the State include more beneficiaries under the DBT mode, a recommendation the UDF government has now decided to implement.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in