Direct Cash Transfers: 12 States to Spend Rs 1.7 Lakh Crore on Women in 2024

In a landmark shift toward gender-inclusive welfare, 12 Indian states have institutionalized direct cash transfer schemes for women, with their combined spending set to exceed Rs 1.7 lakh crore this fiscal year. From Tamil Nadu’s Kalaignar Magalir Urimai Thogai to Delhi’s Mukhyamantri Mahila Samman Yojana, these initiatives highlight the growing focus on women’s economic empowerment—while sparking debates on fiscal sustainability and electoral motives.

Women-Centric Cash Transfers: A Growing Trend

Over the past five years, cash transfer schemes for women have evolved from pilot projects to mainstream policies. The 12 states implementing them—including Karnataka, Andhra Pradesh, and West Bengal—now cover over 15 crore women beneficiaries. Key programs include:

• Tamil Nadu: Rs 1,000/month to 1.1 crore women family heads.
• Delhi: Rs 1,000/month to all adult women (Budget: Rs 1,900 crore).
• Karnataka (Gruha Lakshmi): Rs 2,000/month to 1.3 crore women (Annual cost: Rs 31,000 crore).

Economists call this the “feminization of welfare”—a shift toward Direct Benefit Transfers (DBTs) to reduce leakage and boost women’s financial autonomy.

Fiscal Impact: Can States Afford These Schemes?

The Rs 1.7 lakh crore expenditure (0.6% of India’s GDP) raises concerns about fiscal health, especially in debt-heavy states like Punjab and Kerala.

Pros of Cash Transfers

• Poverty Reduction: NITI Aayog links cash transfers to a 12% decline in poverty among female-headed households.
• Financial Inclusion: World Bank data shows 80%+ recipients actively use bank accounts.

Cons & Challenges

• Sustainability: Andhra Pradesh delayed salaries to fund its scheme.
• Inflation Risks: Economists warn of price surges in local markets.

Political Debates: Welfare or Freebies?

With 7 of the 12 states facing elections by 2024, critics call these schemes “vote-catching freebies.” Advocates counter that they address historical gender gaps.

“Women reinvest 90% of income in families, compared to 40% by men.”
—Dr. Renana Jhabvala, SEWA

The BJP-led Centre avoids state-style cash transfers but has expanded PM Kisan Samman Nidhi, which includes women farmers.

The Road Ahead: How to Optimize Transfers

For long-term success, experts suggest:
1. Better Targeting: Focus on low-income groups (e.g., Odisha’s MAMATA for pregnant women).
2. Skill Development: Pair cash with training (e.g., Kerala’s Kudumbashree).
3. Tech Integration: Use Aadhaar-linked DBTs to reduce delays (e.g., Bihar’s Mukhyamantri Nari Shakti Yojana).

Bottom Line

Women-centric cash transfers are here to stay, but smart design—not just spending—will decide their success.

By [Your Name], NextMinuteNews
Data sources: RBI State Finances Report 2024, NITI Aayog, World Bank