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India scales up cash transfers but improve delivery
India has substantially increased government cash transfer programs aimed at reducing poverty, with 17 of 28 states and Delhi now offering monthly transfers to vulnerable households. These cash transfers serve as short-term economic buffers amid inflation and climate challenges, covering a significant portion of household expenses. However, concerns are rising about their fiscal sustainability, as many schemes contribute to state deficits and crowd out other spending, prompting calls for improved assessment and more efficient targeting. Experiments suggest that lump-sum transfers could promote investment and income-generating activities, but scaling such approaches presents targeting and risk challenges.
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