Rise of Cash Transfer Schemes
Maharashtra and Jharkhand introduced cash transfer schemes for women (₹1,500 and ₹1,000 respectively) in 2024 - ‘Mukhyamantri Majhi Ladki Bahin Yojana’ and ‘Jharkhand Mukhyamantri Maiya Samman Yojana’
14 Indian states already have similar schemes for women, reaching a significant portion of the female population.
Reasons for Popularity
With rising female voter turnout and independent voting behavior, political parties are focused on addressing women’s needs, as a swing in votes can determine election outcomes.
Direct Benefit Transfer (DBT) helps avoid middlemen and reduces corruption, allowing money to directly reach beneficiaries.
Quick Political Gains: Cash transfers are immediate and visible, unlike long-term infrastructure projects, making them an effective tool for gaining voter loyalty.
Many states have adopted similar cash transfer schemes, indicating a lack of innovative welfare policies, with DBT becoming the go-to solution.
Challenges with Cash Transfers
DBT is seen as a short-term solution that may not address systemic issues like poverty or inequality.
Critics argue that it reduces the state's responsibility to improve public services and infrastructure.
The poor may be nudged to rely on private alternatives for basic needs, a shift that they cannot always afford, while wealthier citizens have already disengaged from state services.
The Future of Welfare
The growing trend of cash transfer schemes raises the question of whether this will become the standard welfare model, or if alternative approaches will emerge to tackle deeper systemic issues.
COMMENTS