💰 12 States to Spend ₹1.68 Lakh Crore on Women’s Cash Transfer Schemes in FY26: PRS Report

A new report by PRS Legislative Research reveals that 12 Indian States will collectively spend ₹1.68 lakh crore on unconditional cash transfer (UCT) schemes for women in 2025–26, a massive jump from just two States implementing such programs three years ago.

The study highlights rising fiscal stress, with six of these States projecting revenue deficits this year. When adjusted for UCT spending, several States show improved fiscal health — for instance, Karnataka’s deficit (0.6%) would turn into a 0.3% surplus, and Madhya Pradesh’s surplus would rise from 0.4% to 1.1%.

These schemes — including Tamil Nadu’s Kalaignar Magalir Urimai Thogai Thittam, Madhya Pradesh’s Ladli Behna Yojana, and Karnataka’s Gruha Lakshmi — provide ₹1,000–₹1,500 per month to women in eligible households.

Assam and West Bengal saw the sharpest allocation increases (31% and 15% respectively). However, the RBI has warned that expanding subsidies and transfers could squeeze fiscal space for capital and productive spending.

To manage costs, Maharashtra recently cut benefits under its CM Ladki Bahin Yojana, while Jharkhand raised payments under the CM Maiyan Samman Yojana to ₹2,500 per month in late 2024.