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The political cost of unconditional cash transfers

The article analyzes the political economy of unconditional cash transfers versus conditional welfare schemes, arguing that linking benefits to socially desirable outcomes like education and health yields broader developmental gains. It highlights the trade-off between immediate electoral appeal of direct cash transfers and long-term human capital formation through conditionalities. The piece draws on evidence from schemes like PM-KISAN and state-level initiatives to illustrate how conditional transfers improve outcomes in nutrition, school attendance, and women's empowerment. This debate is central to India's evolving social protection architecture and fiscal federalism.

Source: The Hindu. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.