Schemes focused on women are at the center of discussion just before the Bihar assembly elections. This trend is not uncommon, as freebi schemes for women were also announced in the elections held in ten major states in the last two years. These schemes are often started as a strategy for winning elections, but later the reason for financial pressure is changed.
Similarly, Prime Minister Narendra Modi launched the ‘Mukhyamantri Mahila Employment Scheme’ of Bihar on 26 September 2025, in which each beneficiary will get Rs 10,000 as an initial grant through direct benefit transfer. Additional financial assistance in later stages can be up to Rs 2 lakh.
Election winning strategy?
A research has revealed that such projects have proved to be a strategy to win elections, but after the election many major changes are made in these schemes. Due to which the basic nature of the schemes changes. Research has reported that women-centric schemes are often announced openly during elections, but later they are rational in terms of beneficiaries when financial pressure increases.
Estimates of spending cuts
According to MK Research, the expenditure of states on cash transfer schemes to women has reduced 0.1 percentage points of GDP, compared to the budget estimate of FY 2026, compared to the budget estimate of FY 2026.
The report said, ‘States like Haryana, Maharashtra and Odisha have been cut more, as financial pressure has increased. Later on, there will be a nominal increase on these schemes.
Increase in fiscal deficit
The widely prevalent trend of announcing free gifts before the elections is equivalent to an average of 1.7 percent of the state’s GDP (GSDP). Due to this, the fiscal deficit in the election year has increased by one percentage points of the state’s GDP (GSDP) compared to the previous year.
What are the condition of Chhattisgarh
Chhattisgarh saw the biggest jump when compared to a year before and after the election. Elections held in November 2023, Chhattisgarh’s financial deficit was 1 percent in the earlier-election year, but it increased to 4.9 percent after the election.
MP and Odisha also increased losses
According to PRS Legislative Research, the financial deficit in Odisha, Madhya Pradesh and Karnataka has also increased by 1.4–1.5 percent, but it was 4.9 percent in the year. So it recorded a fiscal deficit of one percent in the election year.
Development or cut in schemes
Explain that the increasing financial deficit puts pressure on states to either reduce capital expenditure and stop development works, or to maintain welfare schemes to maintain their financial position, or both handle their financial situation.
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