EAC-PM Recommends 'Cash-Plus' Model for Women's Transfer Schemes

The Economic Advisory Council to the Prime Minister (EAC-PM) released a working paper recommending that unconditional cash transfer (UCT) schemes for women be evolved into cash-plus architectures. These expanded models would combine direct income transfers with voluntary capacity-building, digital literacy, and self-help group linkages.

Analyzing Maharashtra's Mukhyamantri Majhi Ladki Bahin Yojana and Odisha's Subhadra Yojana, the council found that these programs significantly boosted savings and consumption. Month-end account balances increased by 84% in Maharashtra and 45% in Odisha, while monthly spending rose by 46% and 28%, respectively. The study noted increased expenditures on healthcare, education, and lifestyle, alongside reduced financial pressure on male household members.

The EAC-PM suggests that transfer amounts should be reviewed periodically to maintain adequacy against inflation and changing expenditure patterns. This guidance comes as more than 15 Indian states have adopted similar schemes by FY26, covering approximately 12 crore women with an estimated annual cost of 1.7 lakh crore rupees.

However, the Reserve Bank of India has issued warnings regarding high state debt levels. The central bank cautioned that extensive welfare expenditures could crowd out critical investments in physical and social infrastructure.