Economics · Direct Benefit Transfer
The government introduces a Direct Benefit Transfer (DBT) to replace in-kind PDS. Some states report better targeting, while others note cash misuse and inflation eroding real subsidy value. What is the key concern with DBT replacing PDS?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It reduces fiscal transparency
- 2It encourages corruption
- 3It increases administrative cost
- 4It may weaken price stability and food access during market shocks✓
Correct answer
It may weaken price stability and food access during market shocks
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