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5h ago

PRS Flags Fiscal Strain as 12 States Budget Rs 1.68 Lakh Crore for Women’s Cash Transfers

The think tank finds that removing these payouts from state accounts strengthens revenue balances in several cases.

These schemes typically provide monthly financial assistance through Direct Benefit Transfer to women who qualify based on income thresholds, age, and other eligibility factors. (Photo: ITG)

Overview

  • States’ combined 2025–26 outlay for women-focused unconditional cash transfers totals Rs 1.68 lakh crore, about 0.5% of GDP.
  • The number of implementing states has jumped from two in 2022–23 to twelve in 2025–26, underscoring rapid expansion.
  • Six of the twelve states project revenue deficits for 2025–26, with PRS showing improved indicators when UCT spending is excluded.
  • PRS highlights Karnataka as a case where the revenue balance flips sign depending on whether UCT outlays are included.
  • Schemes typically pay Rs 1,000–1,500 a month via DBT under programmes such as Kalaignar, Ladli Behna and Gruha Lakshmi, as Assam and West Bengal increase allocations and the RBI cautions about shrinking fiscal space.