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UCTs Cost $18 Billion in 2025-26; Targeting Errors in Schemes Like Kalaignar Yojana Impose Political Costs

Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
06 Sept 2026
~2 min
Source: The Hindu
Key Data:$18 billion₹13,807 crore1.13 crore16.94 lakhSDG 5.4
Practice MCQs from today's news ▸
What This Article Covers

1.UCT schemes have become an electoral strategy but face political costs due to targeting errors (inclusion and exclusion).

2.Example: Kalaignar scheme initially covered 1.13 crore women, later added 16.94 lakh beneficiaries, costing ₹13,807 crore in 2025-26.

3.Conditional cash transfers like the Midday Meal Scheme reduce grievances by linking benefits to socially desirable outcomes.

The Big Picture
Prelims · HighMains · High

The article analyzes the political costs of unconditional cash transfer (UCT) schemes targeting women in India, using examples like Kalaignar Magalir Urimai Thittam. It highlights targeting errors (inclusion/exclusion) and suggests conditional cash transfers as a more sustainable alternative. Key data: States to spend $18 billion on UCTs in 2025-26.

Exam Lens

Quick Exam Facts From News

Total UCT spend by states 2025-26$18 billion
Kalaignar scheme cost 2025-26₹13,807 crore
Initial beneficiaries Kalaignar1.13 crore
Additional beneficiaries (Dec 2025)16.94 lakh
SDG target linkedSDG 5.4 (unpaid domestic work)

1-Minute Revision

  • ›Total UCT spend by states 2025-26: $18 billion
  • ›Kalaignar scheme cost 2025-26: ₹13,807 crore
  • ›Target this Data: $18 billion estimated UCT spend by states in 2025-26
  • ›Target this Data: Kalaignar scheme cost ₹13,807 crore in 2025-26, initially covering 1.13 crore beneficiaries
  • ›Target this Scheme: Kalaignar Magalir Urimai Thittam (Tamil Nadu), Lakshmir Bhandar (West Bengal), Gruha Lakshmi (Karnataka), Mukhyamantri Majhi Ladki Bahin (Maharashtra)

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Q1Static LinkageEasy

Which of the following is an example of an unconditional cash transfer (UCT) scheme mentioned in the article?

Q2Statement-basedHard

Consider the following statements:

1. Unconditional cash transfers (UCTs) partially advance SDG 5.4, which calls for recognition of unpaid domestic and care work.

2. The Lakshmir Bhandar scheme faced allegations of including non-residential citizens.

3. Conditional cash transfers are less vulnerable to political costs from targeting errors.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the Economic Survey, what is the estimated total expenditure by states on unconditional cash transfers in 2025-26?

Q4Application/ImpactMedium

According to the article, what is the primary political cost of targeted unconditional cash transfer schemes?

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