What happened: Delhi’s Lakshmi Yojana begins unconditional cash transfers
Delhi launched Lakshmi Yojana, an unconditional cash transfer (UCT) programme that provides eligible women ₹2,500 per month. The programme is positioned as a welfare delivery method and follows a broader UCT direction already visible in other States and Union Territories.
Background and earlier position: fiscal reviews question the budget room for UCTs
Major fiscal assessments and studies highlighted in the discussion—including the Economic Survey and the 16th Finance Commission report—raised concerns about the growing budgetary burden linked to expanding unconditional transfers. The concern rests on limited fiscal room because State finances are not fully flexible: large shares of expenditure go to items such as interest payments, pensions, and salaries.
The discussion also notes that some States used “rationalisation” (restricting eligibility) to reduce beneficiaries or control costs for UCT-type welfare programmes. It also points out that Lakshmi Yojana may include restrictive eligibility conditions intended to keep beneficiary numbers contained, including a requirement for recommendations from local representatives.
What changed now: UCT spending shares vary sharply across States
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