Girls-focused money switch schemes are quickly reshaping state budgets throughout India. A brand new report by PRS Legislative Analysis reveals that 12 states will collectively spend Rs 1.68 lakh crore on such programmes in 2025-26. This represents a pointy leap from simply two states three years in the past.
These unconditional money switch (UCT) schemes, providing month-to-month funds of Rs 1,000–1,500 to girls from low-income households, have grow to be a cornerstone of welfare politics. Flagship initiatives embrace Tamil Nadu’s Kalaignar Magalir Urimai Thogai Thittam, Madhya Pradesh’s Ladli Behna Yojana, and Karnataka’s Gruha Lakshmi scheme.
Nonetheless, the surge in spending is placing fiscal strain on the federal government. Six of the 12 states operating these schemes are projected to put up income deficits this 12 months. Adjusted knowledge exhibits Karnataka would swing from a 0.6% deficit to a 0.3% surplus if UCT spending have been excluded. In the meantime, Madhya Pradesh’s surplus would enhance from 0.4% to 1.1%.
States like Assam and West Bengal have raised allocations sharply — up 31% and 15%, respectively. This underscores the rising political and social weight of girls’s money welfare programmes. However the RBI has cautioned that increasing such subsidies may squeeze funds for productive investments.
Some states are already tweaking advantages to include prices. For example, Maharashtra trimmed payouts below its Ladki Bahin Yojana this 12 months. Conversely, Jharkhand raised month-to-month assist below the Maiyan Samman Yojana to Rs 2,500 in late 2024.
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