India to Spend $18 Billion on Unconditional Cash Transfer Schemes in 2025-26
GS2Polity · Governance · IR· Vulnerable sections (SC/ST, minorities, disabled, elderly, children)· Prelims + Mains·
UCT schemes and SDG 5.4: a key GS2 topic on social justice and women's economic empowerment.
Why in news
State governments are projected to spend $18 billion on Unconditional Cash Transfer (UCT) schemes in 2025-26 to recognize unpaid domestic work and advance SDG 5.4.
Background
UCT schemes in India, such as Kalaignar Magalir Urimai Thittam, Lakhsmir Bhandar, and Gruha Lakshmi Yojana, have been active since 2020. These schemes aim to recognize unpaid domestic work and are projected to receive $18 billion in funding for the 2025-26 period.
Facts for Prelims
- FactProjected expenditure on UCT schemes in India for 2025-26 is $18 billion.
- FactUCT schemes in India have been active since 2020.
- FactSDG 5.4 relates to recognizing and valuing unpaid care and domestic work.
- PlaceKalaignar Magalir Urimai Thittam, Lakhsmir Bhandar, and Gruha Lakshmi Yojana are specific UCT schemes implemented in Indian states.
Prelims practice question
With reference to Unconditional Cash Transfer (UCT) schemes in India, consider the following statements:
- UCT schemes in India have been active since 2015.
- SDG 5.4 relates to recognizing and valuing unpaid care and domestic work.
- India projects an expenditure of $18 billion on UCT schemes for the 2025-26 period.
Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)2 and 3 only
- (d)1, 2 and 3
Show answer
Answer: (c) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: UCT schemes in India have been active since 2020.
For Mains
Q. Discuss how Unconditional Cash Transfer schemes contribute to the socio-economic empowerment of women and the achievement of Sustainable Development Goals in India.
Dimensions to cover in your answer
- Gender equity: Formal recognition of unpaid domestic labor as a contribution to the economy
- Fiscal sustainability: Balancing high-expenditure direct benefit transfers with long-term state fiscal health
- Policy efficacy: Evaluating the correlation between cash transfer amounts and electoral outcomes
Keywords: Unconditional Cash Transfer · SDG 5.4 · Unpaid domestic work · Gender empowerment · Direct Benefit Transfer
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