NEWS – Centre Mulls Cash Transfer Scheme for Poor Urban Women

HIGHLIGHTS

• Objective: Boost demand and consumption in urban areas
• Challenges:
  • Identifying beneficiaries
  • Political ramifications of withdrawing the scheme in the future

Scheme Details

• Target Group: Urban women from the unorganized sector
• Implementation:
  • Likely use of the ‘e-shram’ portal (Union labour ministry’s database for unorganized sector workers)
  • Inputs from the Prime Minister’s Office are crucial

Current Economic Scenario

• Urban Economy:
  • Consumption driven by the urban upper middle-class and the rich
  • Rural economy improving due to expectations of a healthy monsoon
  • Urban poor identified as a particularly vulnerable group

Government Considerations

• Fiscal Realities: Balancing welfare schemes against fiscal constraints
• Sustainable Consumption: Pushing for increased consumption among lower-income urban groups

Comparative State Schemes

• Maharashtra:
  • Scheme: Rs 1,500/month for eligible women (21-60 years)
  • Outlay: Rs 46,000 crore
• Delhi:
  • Scheme: Mukhyamantri Mahila Samman Yojana
  • Benefit: Rs 1,000/month for women over 18 years
  • Exclusions: Taxpayers, government pension beneficiaries, government employees
• Other States: Tamil Nadu, Assam, Himachal Pradesh, West Bengal, Karnataka
  • Karnataka’s Scheme: Rs 2,000/month to eligible women as part of five “guarantees”

Conclusion

• Impact: Potential increase in household consumption and economic stability for urban poor women