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Graphic of the day: Transfers hit budgets

Cash transfers for women surge, straining state finances and prompting calls for rationalisation

By Samreen Wani
Last Updated: Nov 10, 2025, 16:01 IST1 min
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States offering unconditional cash transfers (UCTs) to women have jumped from two (2022–23) to twelve (2025–26), with a collective estimated spend of ₹1.7 lakh crore, or 0.5 percent of the GDP. Data shows that UCT spending significantly impacts state finances, with Jharkhand (2.4 percent of GSDP) and West Bengal (1.3 percent of GSDP) allocating the most. The RBI has previously cautioned that this rise in subsidies could reduce fiscal space for productive spending.
States offering unconditional cash transfers (UCTs) to women have jumped from two (2022–23) to twelve (2025–26), with a collective estimated spend of ₹1.7 lakh crore, or 0.5 percent of the GDP. Data shows that UCT spending significantly impacts state finances, with Jharkhand (2.4 percent of GSDP) and West Bengal (1.3 percent of GSDP) allocating the most. The RBI has previously cautioned that this rise in subsidies could reduce fiscal space for productive spending.

First Published: Nov 10, 2025, 16:11

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