Archive · 21 Nov 2025
Cash Politics: Welfare Schemes Reshape Indian Elections
In India, political parties are using big cash transfers to women as election strategies, which might help them win votes but could also harm the states' financial health in the long run.
Ruling alliance in Bihar transferred Rs 10,000 to women ahead of elections
Estimated cost of the scheme exceeded Rs 12,000 crore, reshaping political landscape
Bihar's total pre-poll promises reached roughly Rs 33,000 crore, straining state's finances
Similar schemes in Maharashtra faced governance issues and financial unsustainability
Welfare handouts are increasingly used as political tools, distorting state budgets
- Who
- Ruling alliance in Bihar, political parties in India
- What
- Implemented cash transfer schemes to women ahead of elections
- When
- Recently in Bihar, and previously in Maharashtra
- Where
- India, specifically in Bihar and Maharashtra
- Why
- To win votes and reshape political landscape
Proponents of Cash Transfers
Critics of Cash Politics
Empowerment of Women
Proponents of Cash Transfers
Direct cash transfers can strengthen economic agency of women
Critics of Cash Politics
Schemes may not reach the intended beneficiaries due to governance issues
Political Necessity
Proponents of Cash Transfers
Cash transfers can help political parties win elections
Critics of Cash Politics
Distorts state budgets and harms long-term development
- Scheme Cost (Bihar)
- Rs 12,000 crore
- Total Pre-Poll Promises (Bihar)
- Rs 33,000 crore
- Maharashtra Scheme Cost
- Up to Rs 46,000 crore
- Ineligible Beneficiaries in Maharashtra
- Over 26 lakh
- Potential Impact on State Finances
- Widening fiscal deficits, increased borrowing, slowed development