Direct cash transfers and other supportive measures for women have rapidly gained traction across India, becoming a common practice among states. As of this year, twelve states are implementing such schemes, a significant increase from just two in 2022-23. These initiatives are projected to cost a cumulative Rs 1.68 lakh crore, which is approximately 0.5% of the nation's GDP. Just two years prior, this figure was less than 0.2% of the GDP.
Political parties, regardless of their ideology, are increasingly utilizing cash transfers to women as a strategic tool to connect with voters, especially ahead of elections. Some examples of these schemes include Gruh Lakshmi in Karnataka, Ladli Behna in Madhya Pradesh, Ladki Behna in Maharashtra, and Mukhyamantri Mahila Rozgar Yojana in Bihar. While beneficiaries seem to appreciate these initiatives, the financial burden on state treasuries is a growing concern.
Several states with upcoming elections, such as Assam and West Bengal, have increased their budget allocations for these schemes. Assam has increased its outlay by 31% compared to the revised estimates from the last financial year, while West Bengal has seen a 15% increase. In October 2024, Jharkhand raised the monthly payout under the CM Maiyan Samman Yojana from Rs 1,000 to Rs 2,500.
However, the sustainability of these schemes is questionable, as some states have been forced to scale back benefits due to financial constraints. For example, in April, Maharashtra reduced the monthly benefit under the CM Ladki Bahin Yojana from Rs 1,500 to Rs 500 for women who were already receiving Rs 1,000 under another direct benefit transfer scheme for farmers. The Reserve Bank of India (RBI) has already issued warnings to states regarding the increasing expenditure on subsidies, farm loan waivers, and cash transfers.
A report by PRS Legislative Research indicates that six of the twelve states implementing unconditional cash transfer schemes are estimated to have a revenue deficit in 2025-26. However, the report also suggests that excluding the spending on these schemes improves the fiscal indicators of these states.
In addition to direct cash transfers, states are implementing other measures to support women. In Tamil Nadu, the government has issued a detailed Standard Operating Procedure (SOP) to implement the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, also known as the POSH Act. The SOP aims to eliminate ambiguity in the application of the law and ensure strict compliance across all departments, offices, and establishments in the state. It clarifies roles and responsibilities, outlines a comprehensive scope for prevention, and focuses on awareness and clarity.
The Madras High Court has directed the Government of India to develop a Standard Operating Procedure (SOP) to address cyberattacks against women, including the non-consensual sharing of intimate videos and images on digital platforms. The court has granted the Ministry of Electronics and Information Technology two weeks to submit the SOP.
These measures reflect a growing recognition of the importance of women's welfare and empowerment, but also highlight the challenges of balancing these goals with fiscal responsibility.
