BHUBANESWAR: Implementation of Odisha government’s flagship ‘Subhadra’ scheme could lead to gross output impact in the range of Rs 1 lakh crore to Rs 1.5 lakh crore over a five year period, says the Odisha Economic Survey 2024-25.
It used the marginal propensity to consume (MPC) and input-output framework to calculate the impact. The MPC measures the proportion of additional income that a consumer spends on goods and services as opposed to saving it. For instance, an MPC of 0.8 indicates that for every extra rupee received, 80 paise are spent and 20 paise are saved.
Since Odisha level MPC is not available, the survey used all-India estimates with an average of 0.73 on annual basis. It computed that financial support from Subhadra could lead to additional consumption demand of Rs 7,295 crore. Since consumption of one individual is income of another, the Economic Survey said the businesses meeting this increased consumption would see additional income which would lead to further consumption and this cycle continue.
According to the report, Odisha has seen 87 per cent growth in women cultivators in the last four to five years. An additional reliable source of income in form of direct transfer from Subhadra scheme could act as an incentive for them to invest in their farming activities and earn more. On an average in 2023-24, a woman self-employed worker in Odisha earned Rs 3,836 per month. Subhadra’s financial assistance of Rs 10,000 a year translates to two months of average earnings which gives women additional opportunity to invest and improve well-being.
The survey said women take more responsibility for children. As per Periodic Labor Force Survey, 2023-24, 38 per cent women of more than 15 years of age are subjected to domestic duty compared to 0.6 per cent of men in the same age group. With additional funds women would spend on nutritious food and increase productivity, it added.
The scheme provides a financial safety net and income support to women, promoting their role as members of society. This financial independence is crucial for enhancing women’s agency, allowing them to make decisions that affect their lives and families, the survey added.