With reference to the Vettri Payanam Thittam (VPT) scheme in Tamil Nadu, consider the following statements: 1. The scheme provides no-fare bus travel specifically for women. 2. The expanded VPT scheme is estimated to cost ₹1,600 crore annually. 3. The projected debt servicing for Tamil Nadu is 37% of the state's GSDP. Which of the statements given above is/are correct?

CM C. Joseph Vijay expands VPT to offer no-fare bus travel for women

GS2Polity · Governance · IR· Vulnerable sections (SC/ST, minorities, disabled, elderly, children)· Mains· 11 October 2026

Fiscal sustainability vs. social welfare: a GS2 case study on Social Return on Investment (SROI).

Why in news

Chief Minister C. Joseph Vijay expanded the Vettri Payanam Thittam (VPT) scheme to provide no-fare bus travel for women, sparking a debate on the Social Return on Investment (SROI) versus the state's fiscal deficit.

Background

The expanded VPT scheme expects 84 lakh daily journeys for women, costing an additional ₹1,600 crore annually and ₹6,000 crore in total. Tamil Nadu's GSDP for 2026-27 is estimated at ₹40.67 lakh crore with a revenue deficit of ₹55,775 crore.

Facts for Prelims

FactVettri Payanam Thittam (VPT) is a no-fare bus travel scheme for women in Tamil Nadu.
FactThe expanded VPT scheme is estimated to cost ₹1,600 crore annually.
FactTamil Nadu's GSDP for 2026-27 is estimated at ₹40.67 lakh crore.
FactDebt servicing for Tamil Nadu is projected at ₹1.28 lakh crore, or 37% of estimated revenue receipts.

Prelims practice question

With reference to the Vettri Payanam Thittam (VPT) scheme in Tamil Nadu, consider the following statements:

The scheme provides no-fare bus travel specifically for women.
The expanded VPT scheme is estimated to cost ₹1,600 crore annually.
The projected debt servicing for Tamil Nadu is 37% of the state's GSDP.

Which of the statements given above is/are correct?

(a)1 only
(b)1 and 2 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (b) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: Debt servicing is projected at 37% of estimated revenue receipts, not GSDP.

For Mains

Q. Discuss the challenges of balancing fiscal sustainability with the expansion of universal welfare schemes in Indian states.

Dimensions to cover in your answer

Fiscal sustainability: High revenue deficit of ₹55,775 crore vs. non-targeted subsidy expansion
SROI quantification: Difficulty in measuring gains in female productivity and household income against direct fiscal costs
Targeting efficiency: Risk of subsidy leakage to non-needy demographics in universal no-fare models

Keywords: Social Return on Investment · Fiscal Deficit · Welfare Politics · Gender Mobility · Revenue Expenditure

Read the full news →Report a mistake in this note How notes are made Source: The Hindu ↗Also: GS2 · Government policies & schemes Also: GS3 · Fiscal policy, budget & taxation (GST)

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