12 crore women of 15 states get cash, now why is there a demand to increase it?

When inflation increases, the first impact is on the household budget. Kitchen expenses increase, children’s education becomes expensive and more money also starts being spent on medicine and treatment. In such a situation, if the government is sending a fixed amount every month to the accounts of women, can the same amount be considered sufficient for many years? The Prime Minister’s Economic Advisory Council (EAC-PM)’s answer is – no. The Council believes that the amount of cash transfer schemes being run for women should be increased from time to time according to inflation and changing expenses of the family. With this, the real benefits of these schemes will remain for a long time and the economic condition of women will also be strengthened. The council also said that merely sending money is not enough, but there is a need to make these schemes more effective with time.

Behind this advice is not just a suggestion, but a study based on data. EAC-PM analyzed the Chief Minister Majhi Ladki Bahin Yojana of Maharashtra and Subhadra Yojana of Odisha. The report found that among women who received money directly into their bank accounts, their families’ savings increased, their spending power improved, and there was a positive change in spending on education, health and daily needs. Not only this, the impact of these schemes was not limited to women only but there was improvement in the economic condition of the entire family. Therefore, the Council says that instead of discontinuing these schemes, they should be updated with time, so that rising inflation does not reduce their impact.

Important points of the report-

1. Recommendation to increase the amount according to inflation, so that the actual value of financial assistance provided to women does not reduce.
2. The impact of the schemes of Maharashtra and Odisha was positive. Both the saving and spending capacity of women increased.
3. It was advised to adopt cash-plus model, that is, instead of just giving money, there is a need to add financial literacy, skill development and other services also.

Why is review necessary from time to time?

If a woman gets Rs 1,500 a month today and continues to get the same amount after five years, the purchasing power of that amount will reduce due to rising inflation. This means that the amount of goods that could be purchased earlier will not be able to be purchased later. For this reason, the Council says that the amount of the schemes should be regularly reviewed. The report also suggests that if the government makes schemes more effective through better targeting and technology, the resources saved can be used to provide more assistance to beneficiaries.

What lessons were learned from Maharashtra and Odisha?

Majhi Ladki Bahin Yojana of Maharashtra and Subhadra Yojana of Odisha were made the basis of the study. According to the report, there was an increase of almost 84% in the amount remaining in the bank accounts of beneficiary women in Maharashtra at the end of the month. There was also a significant increase in household expenditure. In Odisha too, positive improvement was recorded in both savings and expenditure of women. According to the report, the women used the amount received not only for daily expenses, but also for children’s education, treatment and other important needs of the family. This indicated that providing direct financial assistance to women benefits the entire family.

Emphasis on ‘cash plus’ model, not just money

EAC-PM believes that providing cash assistance alone will not be sufficient in future. Along with this, women should also get facilities like financial literacy, skill training, better access to health services and government schemes. The council has called this “cash-plus” model. The report also found that women started using UPI and digital payments more. The Council believes that such schemes are playing an important role in making women financially strong as well as improving the financial condition of the entire family.

How many women are getting benefits?

Today, more than 11.8 crore adult women in 12 states of India are getting cash assistance directly into their bank accounts from the government without any conditions. This large number of beneficiaries has made it one of the largest social welfare programs in the world. However, there have been limited studies on its impact so far, so it is also being counted among the world’s largest but least studied social-policy experiments.

How much does the government spend on the cash scheme?

To make women financially strong, direct cash transfer schemes are implemented in about 15 states of the country. Every year about Rs 2.46 lakh crore is spent on these schemes. Their main objective is to provide direct financial assistance to the economically weak, non-income taxpayers and women who are out of government employment. Women are now spending more on education, health and essential goods. The positive impact of these schemes was also seen on the financial condition of the entire family.