While Maharashtra has estimated to record a revenue deficit in 2024-25, it is set to spend the highest amount of cash transfer scheme for women among all the states, said a report by PRS Legislative. Nine states have budgeted to cumulatively spend over Rs1 Lakh Crore on implementing largely unconditional cash transfer schemes for women.
The PRS Legislative published its annual publication titled State of State Finances that analyses the finances of all Indian states and union territories for the financial year 2024-25. Apart from the major themes and trends for the year in state finance, the report also focused upon the cash transfer scheme for women implemented by multiple states.
According to the report, nine states have budgeted to cumulatively spend over one lakh crore rupees on implementing largely unconditional cash transfer schemes for women beneficiaries in the financial year 2024-25. While only Assam and West Bengal had such schemes in 2022-23, the number of states implementing such cash transfers has increased over the last two years.
Although Karnataka’s ‘Gruhalakshmi’ scheme offers a higher monthly benefit of Rs2,000 against Maharashtra’s Rs1,500 for ‘Mukhyamantri Majhi Ladki Bahin’ scheme, its budgetary allocation is only Rs28,608 crores against Maharashtra’s Rs46,000 crores, which is the highest in the country,
The report also stated that Maharashtra has estimated a revenue deficit of 0.5% of gross state domestic product (GSDP) for the financial year 2024-25. Notably, the Mahayuti government had promised to increase the scheme aid from Rs1,500 to Rs2,100 after winning the state assembly elections.
Apart from Maharashtra, Jharkhand has introduced the scheme months after presenting its budget, Himachal Pradesh has started rolling out the scheme in a phased manner, and such schemes are part of poll promises of current governments in Punjab, Haryana and Telangana.
“Implementing unconditional cash transfer schemes can help improve consumption capacity of the beneficiaries. A study sponsored by the West Bengal government found that the beneficiaries of Lakshmir Bhandar in the state spent their allowances on household expenses, education, medical expenses, and investing in small business ventures. Cash transfers can help in reducing the severity of poverty among women, and also enable them to improve nutritional status for themselves and their families,” said the report.
