Cash Transfer Schemes for Women: A New Poll Plank in Indian Politics (GS Paper 2, Government Policies)
Context
- Cash transfer schemes for women have gained traction in recent elections, particularly in Maharashtra and Jharkhand, where the ruling parties introduced these initiatives as key campaign promises.
- In August 2024, Maharashtra’s ‘Mukhyamantri Majhi Ladki Bahin Yojana’ promised ₹1,500 monthly to eligible women, while Jharkhand launched the ‘Jharkhand Mukhyamantri Maiya Samman Yojana’, offering ₹1,000 to eligible women.
- This growing trend in cash transfer schemes is not a political novelty but raises the question: Are these initiatives driven by policy learning, or are state governments simply following a trend in response to electoral pressures?
Four Key Reasons for the Popularity of Cash Transfers for Women
Rise in Women’s Political Presence
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- Increased Women Voter Turnout: Women's voter turnout has risen significantly, from 47% in 1962 to 66% in 2024. This indicates that political parties can no longer afford to overlook women voters, especially in close elections where their support can determine the outcome.
- Independent Voting: Women are increasingly voting independently, fostering the emergence of a ‘women’s constituency’. Political parties are responding to this shift by offering tailored welfare schemes.
- Women’s Reservation Bill: The passage of the Women’s Reservation Bill and the focus on ‘Nari Shakti’ have heightened the pressure on parties to cater to women’s needs and empower them politically.
Bypassing the Middleman
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- Direct Benefit Transfer (DBT): Cash transfers allow governments to bypass intermediaries, reducing systemic corruption and inefficiencies in welfare distribution. By transferring money directly to bank accounts, DBT ensures that benefits reach the intended beneficiaries without leakage.
- Strengthening Leader-Citizen Relationship: DBT fosters a direct relationship between political leaders and citizens, cultivating loyalty and ensuring that welfare schemes are seen as tangible benefits from the government.
- Popularity of Populist Schemes: Cash transfers act as quick political wins. Unlike infrastructure projects, which require long-term planning, cash transfers offer immediate, visible benefits, making them an attractive option for populist politics.
Flattening of Welfare Approaches
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- Lack of Policy Innovation: The increasing adoption of similar cash transfer schemes across states indicates a lack of creativity in welfare strategies. Even opposition-ruled states have embraced these schemes, suggesting that alternatives to DBT are not being actively pursued.
- Limitations of DBT: While cash transfers provide short-term relief, they do not address the root causes of poverty or improve state capacity in the long term. Critics argue that the focus on efficiency through technology may shield the state from the necessary groundwork required to build stronger public institutions.
- Shifting Responsibility to Private Sector: By providing cash directly to the poor, the government is nudging citizens to rely on private alternatives for basic needs, deepening the divide between the rich, who already depend on private services, and the poor.
The Core Issue: Systemic Problems
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- Band-Aid Solution: Cash transfer schemes, while offering immediate financial relief, act as temporary solutions to deeper systemic issues. Without addressing broader structural challenges, such as poor state capacity and inequality in access to basic services, DBT will not lead to sustainable welfare outcomes.
- Narrow Vision for Welfare: The growing focus on direct cash transfers reflects a narrowing of the welfare agenda. The state’s emphasis on "efficiency" via technology risks undermining efforts to create long-term solutions to poverty, healthcare, education, and social security.
Conclusion
- While cash transfer schemes like the ‘Ladki Bahin Yojana’ and ‘Maiyan Samman Yojana’ are likely to continue occupying the political spotlight, they cannot serve as a substitute for comprehensive welfare policies that address the root causes of poverty and inequality.
- These schemes, at best, provide temporary relief but do little to foster sustainable social change.
- Whether this approach will dominate future welfare strategies or whether it will be challenged by new ideas will determine the direction of India's welfare landscape.
