Unlock the myths of free welfare scheme

Oct 15, 2025 - By Ashutosh Roy Politics

Welfare Schemes in India

It didn’t sound entirely absurd when Chhagan Bhujbal raised concerns that the Mukhyamantri Majhi Ladki Bahin Yojana could potentially strain the finances of other government departments by diverting essential funds. This isn’t an issue confined to Maharashtra, welfare scheme politics have become a dominant force across several Indian states.

Let’s take a closer look at some women-centric welfare schemes launched by both the central and state governments. At the national level, initiatives like Beti Bachao, Beti Padhao and Pradhan Mantri Matru Vandana Yojana have been prominent.

States, too, have introduced their own flagship programs. Karnataka’s Bhagyalaxmi Scheme, Haryana’s Aapki Beti Hamari Beti, Maharashtra’s Majhi Ladki Bahin Yojana, and Madhya Pradesh’s Ladli Behna Yojana are prime examples. These schemes have not only shaped social welfare agendas but have also become key tools for electoral success.

Who can forget the resounding impact of West Bengal’s Lakshmir Bhandar in Mamata Banerjee’s 2021 Assembly election victory?

Budget for Welfare Scheme

When we delve into the budgetary allocations for these welfare programs, the numbers are striking. The Maharashtra government has earmarked ₹64,008 crore from its projected revenue of ₹5,63,786 crore. Madhya Pradesh allocated ₹18,669 crore out of  their total revenue of ₹2,90,879 crore.

West Bengal went further, setting aside ₹1.18 lakh crore for gender-specific schemes, despite its projected revenue being just ₹2,68,284 crore.

It’s worth noting that India’s top revenue-generating states like Maharashtra, Gujarat, Karnataka, and Tamil Nadu, have a stronger fiscal foundation to support such extensive welfare initiatives.

In contrast, states like West Bengal, with relatively lower revenue, face tough trade-offs. A massive budget allocation for welfare schemes can come at the cost of critical infrastructure development.

West Bengal’s welfare scheme

West Bengal’s welfare landscape includes prominent programs such as Lakshmir Bhandar for basic income support to women, Kanyashree Prakalpa for girls’ education, and Rupashree Prakalpa, a one-time grant for daughters’ marriages.

Beyond gender-specific schemes, the Mamata Banerjee-led government has launched broader welfare initiatives such as Bardhoka Bhata (pensions for the elderly), Swasthya Sathi (health insurance).

Abhishek Banerjee led the Sebaashray, a constituency-focused healthcare project popularly known as the “Diamond Harbour Model”

However, West Bengal’s economic situation raises serious concerns. The state’s debt burden is projected to cross ₹8 lakh crore by 2025–26—a steep increase over the years. This trend signals a growing risk: populist welfare politics, if not managed prudently, could become economically unsustainable in the long run.

Further, schemes like Amader Para Amader Somadhan and Duare Sarkar add to the financial pressure. Programs like Banglar Bari, introduced after the Centre halted funding for the PM Awaas Yojana, aim to provide rural housing.

The implementation of MGNREGA has also taken a hit due to the Centre’s suspension of funds over alleged irregularities, forcing the state to introduce a parallel employment scheme, Karmashree.

While these efforts may present a pro-poor narrative and serve as political counters to the BJP-led central government, they place an increasing strain on the state’s economy.

Populist Welfare Scheme or Development?

Indeed, direct cash transfers can offer much-needed relief to vulnerable populations, and their immediate social impact is significant. However, if such schemes begin to compromise long-term development or lead to unsustainable debt, governments must revisit their strategies.

Welfare must be balanced with fiscal responsibility to ensure sustainable growth and genuine empowerment.