Cash transfer schemes for women as new poll plank

• In recent elections in Maharashtra and Jharkhand, cash transfer schemes for women played a significant role in political campaigns. Maharashtra introduced the ‘Mukhyamantri Majhi Ladki Bahin Yojana’ offering ₹1,500 per month.
• while Jharkhand rolled out the ‘Jharkhand Mukhyamantri Maiya Samman Yojana’ providing ₹1,000 to eligible women. These schemes are part of a broader trend in India, with 14 states already having similar programs.

Rising Political Attention to Women Voters:

• The increasing political participation of women is driving parties to focus on their needs. Women’s voter turnout has risen from 47% in 1962 to 66% in 2024, and women are voting independently more than ever.
• This shift has made women a significant constituency, with parties now unable to afford to ignore their concerns. The passage of the women’s reservation Bill and the focus on ‘Nari Shakti’ reflect the growing influence of female voters.

Direct Benefit Transfer (DBT) as a Game Changer:

• A key factor in the growing popularity of cash transfer schemes is the use of Direct Benefit Transfer (DBT). DBT allows the government to bypass middlemen, reducing corruption and ensuring that the benefits reach the intended recipients.
• It also facilitates a direct relationship between the leader and the electorate, enhancing personal loyalty. DBT is seen as an efficient way to distribute benefits, especially when more substantial infrastructure changes, like improving schools or hospitals, require longer timelines.

Political Narrative of Benevolence:

• Cash transfers offer an immediate and tangible form of welfare, which is appealing in an environment where long-term infrastructure projects take time. Regular transfers to women’s bank accounts also remind voters of the government's efforts to support them, reinforcing the narrative of a benevolent leadership.
• For the poor, such schemes provide an immediate sense of support in a system where economic benefits are unevenly distributed.

A Lack of Welfare Innovation:

• While cash transfers might seem like an effective response to poverty, the growing trend of similar welfare schemes across states signals a lack of innovation in welfare policy. This approach, primarily focusing on efficiency through technology, avoids the more complex work of improving state institutions.
• Scholars argue that prioritizing cash transfers may be shielding the state from addressing deeper structural issues and the capacity-building needed to improve public services. This focus on efficiency could potentially leave poorer citizens increasingly reliant on private services.

The Future of Welfare in India:

• The prevalence of cash transfer schemes such as ‘Ladki Bahin Yojana’ and ‘Maiyan Samman Yojana’ signals a shift in India’s welfare strategy. Whether this becomes the dominant model or is replaced by alternative solutions will significantly shape the future welfare landscape.