Digital Pathways to Inclusive Welfare: Evaluating Electronic Transfer of Government Benefits for Inclusive Growth

The global landscape of welfare delivery is undergoing transformation, driven by advancements in digital technology.Traditional subsidy mechanisms, often plagued by leakages, inefficiencies, and administrative complexities, have long posed significant barriers to effective public expenditure and equitable access to social support.The advent of electronic transfer of benefits represents a paradigm shift, promising enhanced efficiency, transparency, and accountability.This article undertakes a comprehensive examination of this critical transition.By analysing the evolution, multi-faceted impacts, and persistent challenges of electronic benefit transfer (EBT) systems worldwide, with particular emphasis on the Indian Direct Benefit Transfer model as a prominent and large-scale case study, this research aims to synthesize contemporary understanding.It seeks to inform policymakers, practitioners, and researchers on how to maximize the opportunities presented by digitized welfare while diligently mitigating inherent systemic risks, thereby contributing to the development of more robust, equitable, and efficient social protection systems for truly inclusive growth in the digital era.Governments worldwide are increasingly adopting electronic transfer systems for delivering subsidies, social security, and welfare benefits.Such mechanisms-ranging from India's Direct Benefit Transfer framework to Brazil's Bolsa Famí lia and Kenya's M-Pesa-linked cash transfers-have emerged as pivotal tools for improving efficiency, transparency, and accountability in public expenditure.This paper investigates the evolution, effectiveness, and challenges of Electronic Benefit Transfers-the digital mechanism for disbursing government welfare and subsidy payments.By synthesizing global examples alongside India's Direct Benefit Transfer initiative, we explore implications for transparency, fiscal efficiency, and social inclusion.Through a structured literature review and empirical insights, the study situates India's DBT within broader EBT frameworks, assessing technological enablers, equity concerns, and structural limitations.The analysis is grounded in recent data demonstrating EBT's fiscal savings, systemic reach, and experiential gaps, resulting in policy recommendations for enhancing digital welfare systems globally.