NEW DELHI: After Maharashtra’s decision to launch Ladki Behen, nearly 16% of the country’s adult female population across 10 states will now benefit from income transfer schemes.
An analysis by Axis Bank has estimated the total spend of the states, ranging from MP and West Bengal to Tamil Nadu, Karnataka, at Rs 1.8 lakh crore, which is 0.8% of the combined GSDP of these states, and 0.6% of India’s GDP.
While there have been suggestions that a similar scheme should be launched nationally by the Centre, given that Modi govt announced PM-Kisan for farmers in 2019, Axis Bank economists led by Neelkanth Mishra said it is unlikely as states are already doing it. “A national scheme would also add to inflationary pressures,” they said in a note.
The suggestion for a national scheme had intensified after Congress promised Rs 8,500 monthly payment in the just concluded general elections.
Andhra was the first off the block announcing a scheme in Jan 2020, followed by Assam in Feb 2021 and Himachal and Delhi announcing similar schemes earlier this year. Delhi is likely to roll out the income transfer scheme for women later this year, ahead of assembly polls in early 2025. “While states’ expenditure quality does get affected, so long as capital expenditure continues, re-routing revenue expenditure to these schemes that have lower administrative overheads makes spending more efficient,” Axis Bank said.
An analysis by Axis Bank has estimated the total spend of the states, ranging from MP and West Bengal to Tamil Nadu, Karnataka, at Rs 1.8 lakh crore, which is 0.8% of the combined GSDP of these states, and 0.6% of India’s GDP.
While there have been suggestions that a similar scheme should be launched nationally by the Centre, given that Modi govt announced PM-Kisan for farmers in 2019, Axis Bank economists led by Neelkanth Mishra said it is unlikely as states are already doing it. “A national scheme would also add to inflationary pressures,” they said in a note.
The suggestion for a national scheme had intensified after Congress promised Rs 8,500 monthly payment in the just concluded general elections.
Andhra was the first off the block announcing a scheme in Jan 2020, followed by Assam in Feb 2021 and Himachal and Delhi announcing similar schemes earlier this year. Delhi is likely to roll out the income transfer scheme for women later this year, ahead of assembly polls in early 2025. “While states’ expenditure quality does get affected, so long as capital expenditure continues, re-routing revenue expenditure to these schemes that have lower administrative overheads makes spending more efficient,” Axis Bank said.