Assembly elections 2026 in five states: Will cash transfers to women prove to be game changer?
Assembly elections 2026 are scheduled to take place in five states next month. Four of these states have placed a significant bet on what is perceived to be a winning formula: cash transfers. These four states are directly transferring a total of Rs 24,500 crore into women's bank accounts. The accompanying election promise is that, should they return to power, these funds will continue to be deposited into accounts in this manner for the next five years.
An analysis of election trends over the past five years reveals that the number of states providing cash transfers to women has surged from just one to 15. These states are collectively transferring up to Rs 2.46 lakh crore annually in cash to over 13 crore women—an amount equivalent to 0.7% of these states' total budgets. A state like Jharkhand, for instance, is allocating 81% of its entire rural development budget toward cash transfers for women.
Besides, cash transfers to women the states are also spending huge sums on other free schemes. In Tamil Nadu, 22.2 million ration cardholders receive free refrigerators, education loan waivers, and three free gas cylinders annually. In Kerala, the welfare pension scheme now covers 6.2 million people; furthermore, the pension amount has been increased from Rs 600 to 2,000. In Bengal, Rs 1,500 crore is being spent on pensions for unemployed youth.
Various other welfare initiatives are being stalled
However, another emerging trend is that in states prioritizing spending on cash-based schemes at the expense of broader development projects, the launch of various other welfare initiatives is being stalled. Consequently, major states such as Maharashtra and Karnataka have been compelled to curtail other critical expenditures in order to sustain these cash transfer schemes.
Csh transfers in poll bound states
Tamil Nadu’s DMK government deposited Rs 2,000 each into women's accounts under the guise of a "Special Summer Package." Assam’s BJP government provided Rs 4,000 each to help celebrate the festival of Bihu.
West Bengal’s Trinamool government went a step further, increasing the payout under its "Lakshmi Bhandar" scheme by Rs 500 back in February. Despite a precarious economic situation, Mamata Banerjee’s Trinamool government will be required to disburse Rs 5,000 crore next year to fund this initiative. It was this very scheme that secured Mamata’s victory in the 2021 elections.
Kerala’s Left-led government also introduced the "Stree Sukham" cash scheme, under which 10 lakh women receive Rs 1,000 each every month.