Evaluating Direct Benefit Transfer as a Policy Instrument for Achieving Sustainable Development Goals: Evidence from Uttar Pradesh

Abstract

The current research assessed how effectively Direct Benefit Transfer (DBT) functions as a policy tool for achieving particular Sustainable Development Goals (SDGs) in Uttar Pradesh, India. The study examined four main areas, which included educational progress through SDG 4, health improvements through SDG 3, gender equality through SDG 5, and the implementation of clean energy solutions through SDG 7. The study conducted descriptive and diagnostic assessments of secondary data from 2015 to 2024 before performing econometric modeling with Firth Logit and Probit regression techniques. The study evaluated how DBT exposure affected Gross Enrolment Ratio and various health indicators, which included Infant Mortality Rate, Total Fertility Rate, Crude Death Rate, Female Literacy Rate, and PMUY (Pradhan Mantri Ujjwala Yojana) coverage. The empirical results led to the rejection of all four hypotheses because DBT showed no independent effect on any of the five measured SDG indicators during the research period. The research results show that DBT improves transparency and target efficiency and financial inclusion, but sustainable development results from the interaction between structural components, institutional elements, and socio-economic aspects. The study shows that DBT operates as a governance mechanism that enables policy development through its impact on development outcomes, which depend on policy alignment and infrastructure development and implementation methods.