Revolutionizing Welfare: The Rise of Unconditional Cash Transfers in India

India's Unconditional Cash Transfers (UCTs) have surged dramatically, now surpassing traditional welfare programs in spending. A report by Project DEEP discusses the transformative impact and future direction of UCTs, emphasizing gender-responsive delivery and the need for systemic reform to enhance inclusivity, impact, and long-term empowerment.

An unprecedented surge in Unconditional Cash Transfers (UCTs) has reshaped India's welfare landscape. A new report by Project DEEP highlights this dramatic rise, revealing allocations surpassing those of flagship programs like MGNREGA, with UCTs accounting for a significant portion of social sector spending.

The report underscores a shift toward gender-responsive policy, notably benefiting women from low-income households. It calls for a systematic approach to UCTs, aiming for long-term empowerment and economic stability, while addressing persistent exclusions affecting vulnerable groups such as street dwellers and gig workers.

Authors Pankhuri Shah and Muzamil Baig advocate for a transition from mere financial aid to a 'trampoline effect,' promoting economic participation. They urge robust data systems and policy consolidation to optimize welfare impacts, reinforcing that UCTs should complement, not replace, public investment in essential services.

(With inputs from agencies.)