Archive · 10 Jun 2025
Cash Transfers: A Key Instrument for Socio-Economic Goals
Cash transfers, or giving money to people in need, can really help pull people out of poverty.
Experts agree it's a good way to do it.
India spends a lot of money on these programs.
It's important to plan these programs well, like making sure they work with other help, like healthcare.
The best way to give the money matters, too – like when and how often.
Governments need to keep checking and changing the programs to make them work even better and make sure the money helps people.
Cash transfers are a cost-effective way to lift people out of poverty, according to global scientific evidence.
India has cash transfer schemes worth over INR 2,50,000 crores across central and state governments.
Cash transfers should be designed in conjunction with other welfare measures like infrastructure and social insurance.
The design of cash transfers can vary based on amount, frequency, and timing to achieve specific outcomes.
Continuous measurement and iteration are crucial for optimizing the effectiveness of cash transfer programs.
- Who
- Economists, Indian Central and State governments.
- What
- Cash transfer programs are effective in reducing poverty and promoting economic growth.
- When
- Over the last three decades.
- Where
- Globally, particularly in India.
- Why
- To alleviate poverty and stimulate economic growth.
Critics
Supporters
Purpose of Cash Transfers
Critics
Some consider cash transfers as vote-getting tools with little societal return.
Supporters
Global evidence supports cash transfers as a cost-effective instrument to reduce poverty.
- Global Cash Transfer Recipients
- 1.2 billion people
- India's Cash Transfer Scheme Value
- INR 2,50,000 crores
Sources
The poverty line has moved but have basic vulnerabilities in India eased?
India’s extreme poverty rate declines from 27.1% in 2011-12 to 5.3% in 2022-23: World Bank
Opinion | India Under PM Modi: 11 Years of Good Governance
From Swachhata to Vishwakarma to Ayushman Bharat: 11 years of ‘Garib Kalyan’ under Modi govt
Extreme poverty declines but large chunks of Indians can’t afford two full meals a day: Study
SBI projects fall in India's poverty rates to 4.6% for 2024 amid economic growth