Report says 12 states to spend ₹1.68 lakh crore on cash schemes for women

A total of 12 states across India will collectively spend According to a new report by think tank PRS Legislative Research, Rs 1.68 lakh crore will be spent on unconditional cash transfer (UCT) schemes for women in 2025-26, while only two states had implemented such programs three years ago.

Six of these 12 states project revenue deficits this year, highlighting growing fiscal pressures associated with the rapid expansion of women-focused welfare payments, the report said.

“Six of the 12 states implementing UCT schemes are projected to incur revenue deficit in 2025-26. However, adjusting the revenue balance to exclude expenditure on UCT schemes shows improvement in the fiscal indicators of these states,” the report said.

UCT schemes, which aim to empower women from economically weaker families through monthly direct benefit payments, have become a major welfare feature in many states.

The number of states providing UCT to women on a large scale has increased from two states in 2022-23 to 12 states in 2025-26.

The primary beneficiaries of these schemes are selected on the basis of income limit, age group and other factors.

States like Assam and West Bengal have sharply increased their allocation for women UCTs by 31% and 15% respectively compared to last year.

Important initiatives include Tamil Nadu’s Kalaignar Magalir Urimai Thogai Thittam, Madhya Pradesh’s Laadli Behna Yojana and Karnataka’s Griha Lakshmi Yojana, each of which provides monthly assistance. from 1,000 Rs 1,500 for women in eligible families.

However, the report warns that these plans are putting a strain on the state budget.

For example, adjusted fiscal projections suggest that Karnataka would move from a revenue deficit of 0.6% of its GSDP to a surplus of 0.3% if UCT expenditure is removed. Similarly, Madhya Pradesh’s surplus will increase from 0.4% to 1.1%.

The Reserve Bank of India (RBI) had earlier warned that rising spending on subsidies and cash transfers to women, youth and farmers could reduce fiscal space for productive spending.

Some states have already adjusted benefits to manage costs. Maharashtra cut the monthly payments under the Mukhyamantri Ladki Bahin Yojana in April 2025, while Jharkhand increased the payments under the Mukhyamantri Maiyan Samman Yojana. 2,500 per month by the end of 2024.