Women-centric cash transfer schemes in Maharashtra and Odisha have helped beneficiaries build savings while increasing spending on essential and discretionary needs, according to a working paper by the Economic Advisory Council to the Prime Minister (EAC-PM).
The paper, Unconditional Women Cash Transfer Programmes in India: Evidence from Maharashtra and Odisha, analysed account-level monthly banking data from beneficiaries of Maharashtra's Mukhyamantri Majhi Ladki Bahin Yojana and Odisha's Subhadra Yojana.
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The study found that Maharashtra's Ladki Bahin scheme increased beneficiaries' month-end bank balances by about 84%, or Rs 6,884 per person, while monthly spending rose by 46%, or Rs 1,349. With the scheme providing Rs 1,500 a month, the study estimated that beneficiaries spent nearly 90% of the transfer while also building savings.
In Odisha, the Subhadra Yojana increased beneficiaries' month-end balances by about 45%, or Rs 6,887, while monthly spending rose by 28%, or Rs 1,920.
The paper also highlighted a shift in spending patterns. In Maharashtra, education-related ATM spending increased from 18% to 24%, while UPI spending on lifestyle and medical needs rose from 37% to 42% and 8% to 10%, respectively.
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The benefits extended beyond direct recipients. Relatives of Ladki Bahin beneficiaries recorded higher account balances and lower spending, suggesting reduced financial pressure on households as women received direct income support, the paper said. Similar spillover effects were observed under Odisha's Subhadra Yojana.
The study also found that older women tended to retain a larger share of transfers as savings, while younger beneficiaries spent more. Women with lower educational attainment saw stronger gains in both savings and spending, indicating a greater impact among financially constrained households.
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