November 5, 2025

Direct cash transfers to women are spreading fast across India! A recent report by Times of India reveals that 12 states today offer direct cash benefits to women, up from just two states in 2022-23. This fiery growth means that states will spend a whopping Rs 1,68,050 crore this year—that's half a percent of India’s GDP—on these unconditional cash handouts, a sharp jump from less than 0.2% two years ago. Fancy schemes like Karnataka’s Gruh Lakshmi, Madhya Pradesh’s Ladli Behna, Maharashtra’s Ladki Behin, and Bihar’s Mukhyamantri Mahila Rozgar Yojana show how political parties are using cash transfers as golden tickets to woo women voters before elections. Women beneficiaries are reportedly happy, but this cash flow is testing the limits of many state treasuries. Look out 2026! States like Assam and West Bengal, gearing up for elections, have boosted their allocations. Assam’s fund for these schemes jumped by 31% compared to last year, while West Bengal pumped theirs up by 15%. Jharkhand got fiery too—in October 2024, it cranked up its monthly CM Maiyan Samman Yojana cash from Rs 1,000 to Rs 2,500. Yet, it’s not always smooth sailing. Some states must cut back due to tight budgets. Maharashtra, for instance, shrunk its monthly CM Ladki Bahin Yojana cash from Rs 1,500 to Rs 500 for those women already getting Rs 1,000 elsewhere. The trend of giving direct cash started with farmers in Odisha but has zoomed toward other groups. Big financial watchdogs like the Reserve Bank of India are flagging worries about rising spending on subsidies, farm loan waivers, and cash transfers. A PRS report highlights that half the 12 states running these unconditional cash transfer (UCT) schemes expect a revenue deficit by 2025-26. However, if you remove UCT spending from their books, their fiscal health looks better. Cash transfers also shake up the balance sheets: Karnataka shifts from a small revenue surplus of 0.3% of its Gross State Domestic Product (GSDP) to a deficit of 0.6%. Madhya Pradesh’s surplus drops too, from 1.1% to 0.4%. Are these cash gifts a winning political jackpot or a tricky gamble on state finances? The next elections and budgets will decide!

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Tags: Cash Transfers, Women Beneficiaries, State Schemes, India, State finances, Elections,