NEW DELHI: Direct cash transfer schemes for women announced by nine state governments are projected to cost the exchequer over Rs 1 lakh crore in the financial year 2024-25, according to a report by PRS Legislative Research. These schemes will account for a significant portion of the states' total revenue receipts.
The report highlights that Karnataka would need to allocate 11% of its revenue receipts to fund the scheme, while Maharashtra would spend 9% on a similar initiative.
Nine states Assam, Chhattisgarh, Karnataka, Maharashtra, Madhya Pradesh, Odisha, Tamil Nadu, and West Bengal have already launched cash transfer schemes for women. Jharkhand has introduced a similar scheme, and Himachal Pradesh is in the process of rolling out its own.
“Additionally, these schemes feature prominently in the poll promises of the current governments in Punjab, Haryana, and Telangana,” the PRS report notes.
The schemes primarily aim to benefit women from lower-income households, excluding government employees, income tax payees, and professionals. Beneficiaries are selected based on income and age criteria.
According to data compiled by PRS Legislative Research, the estimated expenditures for some states include:
Karnataka: Rs 28,000 crore
Madhya Pradesh: Rs 29,000 crore
West Bengal: Rs 14,400 crore
Tamil Nadu: Rs 13,720 crore
Maharashtra: Rs 10,000 crore
The PRS report also highlights the potential benefits of such unconditional cash transfer schemes, stating that they can enhance the consumption capacity of beneficiaries. Citing a study sponsored by the West Bengal government, the report notes that recipients of the Lakshmir Bhandar scheme used their allowances for household expenses, education, medical needs, and investments in small business ventures.