UCT To Women: UCT (Unconditional Cash Transfer) schemes, which were started with the aim of empowering women, have now reached not just two but 12 states. These schemes, which send money directly to women’s bank accounts, have not only gained political popularity, but have also put a huge burden on the fiscal budgets of the states.
According to the estimated budget for 2025-26, state governments will spend approximately Rs 1.68 lakh crore on women’s welfare schemes, which is equivalent to about 0.5 percent of the country’s GDP.
Increasing expenditure on women’s schemes
Compared to the financial year 2024-25, Assam has increased the budget allocation for such schemes for women by 31 percent and West Bengal by 15 percent. According to the report of PRS Legislative Research, due to these cash transfer schemes started in the name of empowerment of women from economically weaker sections, the additional financial burden on the states is increasing. While such schemes were implemented only in two states in the financial year 2022-23, by 2025-26 this number has increased to 12 states.
rising fiscal deficit
The report also states that six out of twelve states, which are implementing UCT schemes, have estimated revenue deficit for the financial year 2025–26. The report indicates that when the revenue balance is adjusted by removing the expenditure on these cash transfer schemes, the fiscal indicators of many states look better.
This makes it clear that UCT schemes have become a major reason for the revenue deficit of these states. That is, these schemes providing direct cash assistance to women are putting direct pressure on the financial balance of the states.
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