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    The cost of unconditional cash transfers

    The Analyst by The Analyst
    August 18, 2026
    in India
    The cost of unconditional cash transfers


    Women receive the Pongal gift items, along with 21,000 provided by the Tamil Nadu government in Madurai in January 2023

    Women receive the Pongal gift items, along with 21,000 provided by the Tamil Nadu government in Madurai in January 2023
    | Photo Credit: THANGARATHINAM N

    On August 1, the Delhi Chief Minister launched the Lakshmi Yojana which will provide eligible women with an Unconditional Cash Transfer (UCT) of ₹2,500 per month, fulfilling one of the ruling party’s central promises during the Assembly elections. With this, Delhi joins the list of States/UTs which now have such a UCT scheme for women.

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    Over the last two years, many studies, including the Economic Survey and the 16th Finance Commission (FC) report have raised concerns over the increasing fiscal burden of such schemes. Recent reports show that in States such as Maharashtra and Madhya Pradesh, the number of beneficiaries has been reducing in the name of rationalisation.

    Published – August 17, 2026 07:00 am IST



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