12 States Spend ₹1.68 Lakh Cr on Unconditional Cash Transfers to Women in FY26

16th FC Report: UCT Schemes Exceed 50% of Education Budget in 3 States, Fiscal Space Shrinks

The 16th Finance Commission and Economic Survey have raised concerns over the rising fiscal burden of Unconditional Cash Transfer (UCT) schemes for women. In states like Jharkhand, UCT spending exceeds 10% of total state expenditure and over 50% of education spending, threatening other public services. With 44% of state expenditure locked in interest, pensions, and salaries, fiscal space is shrinking.

Centre Mandates 60:40 Centre-State Funding Split for VB-G RAM-G Rural Employment Scheme

The Centre has shifted the funding pattern of the National Rural Employment Guarantee Scheme (now VB-G RAM-G) from 100% central funding to a 60:40 Centre-State split (90:10 for Himalayan/Northeast states). This marks a major fiscal federalism change, with states allocating full 40% despite political opposition. Essential for Prelims (ratio, scheme name) and Mains (fiscal federalism, rural wage floor).

Tamil Nadu Budget 2026-27: ₹300 Cr Iyothee Thass Scheme for Adi Dravidar Habitations

Tamil Nadu's revised Budget 2026-27 introduces the 'Iyothee Thass Pandithar Habitation Development Scheme' (₹300 crore) for comprehensive development of Adi Dravidar habitations and the 'Mannin Magal Thittam' (₹20 crore) to make Adi Dravidar and tribal women agricultural labourers landowners. This is a key state welfare initiative with high social justice and governance exam relevance.

Tamil Nadu Budget 2026-27: Fishing Aid Raised to ₹7,000, Vetri Magalir Goat Scheme & Livestock Insurance Announced

Tamil Nadu's revised budget for 2026-27 increases lean-period fishing assistance from ₹6,000 to ₹7,000 per family, benefiting 1.93 lakh traditional fishermen. It also launches the 'Vetri Magalir Goat Rearing Scheme' for destitute women and transgender persons, and a new livestock insurance scheme 'Kaalnadaigal Kaappom'.

Tamil Nadu Budget 2026: TVK Govt Maiden Budget - ₹10.98 Lakh Cr Debt, 27.01% Debt-to-GSDP

Tamil Nadu's new TVK government presented its maiden budget, revealing key fiscal indicators: outstanding debt of ₹10.98 lakh crore and a 27.01% debt-to-GSDP ratio. The budget includes poll promises like 'Annan Seer' (8-gram gold coin + silk saree) for brides and a new law college, but omitted major promises like ₹2,500 monthly assistance for women and free bus travel. This is critical for understanding state fiscal health and the balance between populism and prudence.

TN CM Vijay Announces Annapoorani Super Six Scheme: 3 Free LPG Cylinders & Vetri Payanam Bus Travel Expansion

Tamil Nadu CM Joseph Vijay announced two major welfare schemes for women: 'Annapoorani Super Six' providing 3 free LPG cylinders/year to 1.30 crore families (₹4,000 Cr cost), and 'Vetri Payanam' expanding free bus travel to all government buses with no income/journey cap (₹6,000 Cr cost). This is significant for state welfare economics and women's empowerment.

Karnataka's ₹1.5 Lakh Cr Bengaluru Infra Push: Tolled Tunnel Roads Spark 'Poor Subsidising Rich' Debate

Karnataka is pushing nearly ₹1.5 lakh crore in Bengaluru road projects (twin-tunnels, elevated corridors, PRR). Activists and economists argue these are car-centric 'white elephants' funded by public money (40% Viability Gap Funding) and heavy tolls, creating a case of the poor subsidising the rich. This raises critical questions about infrastructure priorities, public finance, and urban planning for exams.

RBI Flags Consumption Loan Risk: Gen Z Unsecured Debt Hits 58.4% of Household Borrowings

Gen Z’s buy-now-pay-later lifestyle is driving a surge in unsecured consumption loans. Non-housing retail loans now constitute 58.4% of household debt, with delinquencies rising and fintechs holding 56.8% of small-ticket personal loans. The RBI has flagged these risks for close monitoring.