One useful takeaway
- States will spend an estimated $18 billion on Unconditional Cash Transfers (UCTs) in 2025-26, largely targeting women.
ARTICLE PREVIEW
Gist Since 2020, Indian state governments have increasingly relied on Unconditional Cash Transfer UCT schemes targeted at women as a primary electoral and welfare strategy. However, despite heavy fiscal allocations, several incumbent governments implementing these schemes have faced electoral setbacks due to the political backlash generated by targeting errors and perceived exclusion. For a civil services aspirant, this highlights a critical tension in public policy: the economic necessity of targeting scarce fiscal resources versus the political fallout generated by the inevitable exclusion of constituents. Background Unconditional Cash Transfers UCTs are direct financial disbursements made to citizens without requiring them to fulfill specific behavioral conditions like school attendance or vaccination . These schemes are partially designed to advance Sustainable Development Goal SDG 5.4 , which mandates the recognition and valuation of women's unpaid domestic and care work. Because governments cannot directly track or observe the actual income of most workers in India's vast informal sector, they must rely on proxy indicators—such as land ownership, electricity consumption, or household assets—to identify eligible beneficiaries. This reliance on proxy metrics inherently creates a flawed…
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