More Stories

Informist, Monday, Jul. 6, 2026

 

NEW DELHI – Cash transfer programmes such as 'Mukhyamantri Majhi Ladki Bahin Yojana' in Maharashtra and the 'Subhadra Yojana' in Odisha generate large, statistically significant, and broadly consistent improvements in beneficiaries' savings and consumption, according to a working paper by the Economic Advisory Council to the Prime Minister. These schemes have led to a higher share of spending on lifestyle, medical, and educational purposes, the paper said.

 

These programmes have helped in improving monthly consumption spending appetite in such states, as per the paper titled 'Unconditional Women Cash Transfer Programmes in India: Evidence from Maharashtra and Odisha'. These schemes have causal impacts on beneficiaries' savings and month-end balances as well as consumption and monthly withdrawals, the paper by Soumya Kanti Ghosh and Shagishna K said.

 

The cash transfer programme in Maharashtra raised month-end balances by about 84%, or an absolute gain of INR 6,884 per beneficiary, and spending by about 46% or INR 1,349. The programme in Odisha has raised balances by about 45% or INR 6,887 per beneficiary and spending by 28% or INR 1,920.

 

Even as beneficiaries in Maharashtra and Odisha have more money in hand to spend now, they tend to spend the major share on buying immediate goods. "The Marginal Propensity to Consume was around 0.90 for the monthly transfers indicating liquidity constraints," the paper said. 

 

On the other hand, the paper found these programmes generate positive spillovers for male household members as there is a decline in their spending outflows with the improvement in the beneficiary's income security. "The consumption increases are qualitatively welfare-improving, with growing shares of spending directed toward lifestyle, medical, and educational purposes rather than inferior goods," it said.

 

The 'Subhadra Yojana' in Odisha provides financial assistance of INR 10,000 annually to eligible women aged 21-60 years from households with annual incomes below INR 250,000. The 'Mukhyamantri Majhi Ladki Bahin Yojana' in Maharashtra offers monthly income support of INR 18,000 annually to women aged 21-65 years from economically vulnerable households.

 

At present, more than 15 states have some form of unconditional monthly or annual transfer paid directly into women's accounts. The estimated aggregated cost under these schemes was around INR 1.7 trillion, benefiting 120 million women in India. Having said that, a cash transfer scheme by a state government weighs on its revenue expenditure for the period.

 

Further, the paper suggests such programmes be sustained and evolved towards cash-plus architectures. Transfer amounts should be reviewed periodically for adequacy in light of inflation and evolving household expenditure patterns, according to the paper.  End

 

Reported by Shweta

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.