Maharashtra, Karnataka, and Haryana Lead in Women’s Cash Transfer Allocations for FY25: Report

New Delhi, Nov 30 (KNN) In the financial year 2024-25, nine Indian states have earmarked a total of USD 18 billion for ongoing or proposed cash transfer schemes for women, a significant move that accounts for 0.5 per cent of India's GDP, according to Goldman Sachs Global Research. 

These schemes have emerged as key political tools for state governments, offering direct financial benefits to women while aiming to secure political support ahead of elections.

One of the standout examples is Maharashtra, where the Mahayuti alliance led by the BJP has successfully used the “Ladki Bahin Yojana” to win its second consecutive term. 

Launched by outgoing Chief Minister Eknath Shinde in 2024, the scheme offers Rs 1,500 per month to eligible women between the ages of 21 and 60, provided their households earn less than Rs 3 lakh annually. 

With a budget allocation of USD 5.4 billion—1.1 per cent of the state’s GDP—Maharashtra has the largest share of this budget among all states.

Karnataka follows closely, having launched its own scheme in 2023, with a budget of USD 3.6 billion, or 1 per cent of its GDP. 

Haryana, with a proposed allocation of USD 2.5 billion, promises the highest per capita transfer of Rs 2,100 a month to women above 18 years from households with an income of less than Rs 2 lakh annually. 

Other states like Madhya Pradesh and Delhi also feature prominently, though with smaller allocations, particularly Delhi's modest budget of USD 0.2 billion.

Goldman Sachs predicts that the schemes will have varying economic impacts. Haryana's program is expected to consume 1.7 per cent of its GDP, while states like Delhi and Tamil Nadu will see a relatively smaller fiscal impact, at 0.2 per cent and 0.4 per cent, respectively.

The rise of such cash transfers—beginning with Assam in 2020 and followed by West Bengal in 2021—has marked a trend of gender-focused financial inclusion, where direct benefits to women are increasingly becoming central to political strategies.

(KNN Bureau)