Mumbai, April 1: A significant increase in welfare spending has been observed as several states gear up for upcoming elections. Governments in Assam, West Bengal, Tamil Nadu, Kerala, and Puducherry have collectively announced or disbursed over ₹37,000 crore through various new and expanded schemes, as reported by The Indian Express on March 30, 2026. Most of these initiatives were rolled out between January and March, just prior to the enforcement of the Model Code of Conduct (MCC).
Tamil Nadu Leads with Substantial Cash Transfers
In Tamil Nadu, the government has been particularly proactive, disbursing over ₹13,000 crore in March alone. This surge follows a ₹3,000 crore initiative from Kerala announced earlier. Notably, Assam transferred ₹3,600 crore in a single day on March 10. The trend indicates a clear strategy of front-loading welfare payouts before the MCC comes into effect.
Focus on Women Beneficiaries in Tamil Nadu
A key aspect of these welfare measures is their focus on women. Chief Minister M. K. Stalin announced a ₹3,000 Pongal cash gift for rice-category ration card holders and families in rehabilitation camps for Sri Lankan Tamils, benefiting over 2.22 crore households. Additionally, ₹5,000 was transferred to 1.31 crore women under the Kalaignar Magalir Urimai Thogai (KMUT) scheme, which included payments for February, March, and April, along with a special summer assistance of ₹2,000.
Since taking office in 2021, the Tamil Nadu government has consistently expanded welfare measures aimed at alleviating the financial burden on women, including free town bus travel, ₹1,000 monthly aid, and free breakfasts for schoolchildren.
West Bengal’s Enhanced Benefits
In West Bengal, the Trinamool Congress (TMC) government, led by Mamata Banerjee, has increased benefits under the Lakshmir Bhandar scheme, raising monthly assistance to ₹1,500 for general-category women and ₹1,700 for SC/ST beneficiaries. The Banglar Yuva Sathi scheme was also introduced, providing ₹1,500 per month to unemployed youth aged 21 to 40 for up to five years or until they find employment.
Additionally, the government announced a 4% dearness allowance (DA) hike for state employees, teachers, and pensioners effective April 1, along with a ₹1,000 monthly increase in honoraria for ASHA and Anganwadi workers, civic volunteers, village police, and green police.
Assam’s Significant Welfare Initiatives
In Assam, the Himanta Biswa Sarma government distributed ₹9,000 each to around 40 lakh families under the Orunodoi scheme. The one-day transfer of ₹3,600 crore represents over 10% of the state’s annual own tax revenue of ₹34,823 crore, highlighting the scale of this welfare intervention aimed at women beneficiaries.
Kerala’s Structured Approach
Kerala has adopted a more structured approach to welfare. In October 2025, it raised social security pensions from ₹1,600 to ₹2,000 per month for approximately 62 lakh beneficiaries, including the elderly, widows, and persons with disabilities, adding around ₹2,976 crore to the annual fiscal burden. The Sthree Suraksha scheme was also introduced, providing ₹1,000 monthly support to economically vulnerable women and transgender individuals aged 35–60 who are not covered by existing schemes, targeting 31.34 lakh beneficiaries at an estimated annual cost of ₹3,800 crore.
Puducherry’s Welfare Measures
Despite its limited fiscal capacity, Puducherry has implemented similar welfare measures. The Union Territory approved a ₹3,000 Pongal cash transfer for 3.47 lakh families, along with a subsidized commodity kit worth ₹750. The total cash component amounts to ₹104 crore, bringing the overall package to approximately ₹130 crore, which accounts for over 1% of its annual receipts.
Welfare Spending and Electoral Strategy
The concentration of announcements and disbursals ahead of elections underscores a strategic front-loading of welfare spending, with direct cash transfers emerging as the preferred outreach method. While these measures are framed as social support, their scale and timing have sparked debates about fiscal sustainability and the increasing role of welfare politics in electoral strategies.
A report from October 2025 indicated that between 2023 and 2025, governments had disbursed ₹67,928 crore in pre-poll welfare spending across eight major state elections. Bihar alone accounted for ₹19,333 crore, representing 32.48% of its own tax revenue in the lead-up to elections.
All these states are set to hold elections next month, with vote counting scheduled for May 4.
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