After the Lok Sabha polls a lot of debate has taken place to trace the reasons for the success of the Trinamul Congress in West Bengal. In this poll, TMC bagged 29 out 42 Seats. All debates boil down to one aspect – that it is due to the Lakshmir Bhandar scheme that the TMC achieved resounding success. Under this scheme a woman is entitled to get Rs 1000 per month from the age of 15 to 60. In all, 2.11 crore women have benefitted from this scheme. Critics say the main reason for the success is the dole-based politics of TMC which brought people, especially women, to the booth to cast their vote in the TMC’s favour.

This reasoning may be partially correct, but critics lose sight of the fact that this scheme has brought a transformation in the life of women, especially in the poor families of rural West Bengal. The amount has empowered the poor families in Jungle Mahal and has brought them economic stability in recent years. This is revealed in a study sponsored by the Indian Council of Social Science Research. The lives of women in the Jungle Mahal area had been shrouded with uncertainty on the question of livelihood.The procurement of wood and sal leaves are the principal sources of livelihood of these families.

Some people are engaged in cultivation but the main source of livelihood is forest produce. There is also hardship in the procurement of such produce. The families face difficulties from forest officials. Sometimes, they have to walk long distances to procure forest products. The introduction of the Lakshmir Bhandar scheme, which provides a guaranteed source of income, has provided a sense of security and comfort to their lives. Their own earnings added to the assistance provided by this scheme have been instrumental in changing the lives of thousands of poor families. The free supply of rice through the rationing system has created another area of comfort.

As a result, the family consumption expenditure has increased by 15 per cent in the last few years. People are spending more on food, health, education and other needs. This direct transfer of money into the hands of rural households has stimulated consumption and enriched the local markets. The entire community is experiencing a new level of confidence and reduced levels of uncertainty. The growth story of the Indian economy has not been helpful in creating enough jobs and wiping out poverty. This failure has foiled the objective of attaining inclusive growth.

Ensuring “Sab ka Vikas”, which is key to inclusive growth is difficult to achieve in view of the rigidity of our institutional and administrative structures. Under these circumstances we need to provide direct financial assistance to the poor, especially women in poor families to ensure better use of resources. Nobel laureate Dr. Abhijit Banerjee feels that the cash transfer programme does not make the poor lazy, rather it helps combat poverty and inequality. Dr.Banerjee says research has shown that there is no evidence to suggest that recipients of such schemes tend to waste such assistance or that such transfers induce spending on alcohol and such substances.

Such assistance also does not hamper work behaviour. While the process of targeting recipients is unlikely to be perfect and the undeserving sections may also get money through leakages, that should not deter governments from implementing such schemes, observes Dr. Banerjee. In the case of Jungle Mahal, 85 per cent of poor families have been able to change their lifestyle and consumption pattern after the implementation of the scheme. According to John Rawls, the famous political philosopher, ensuring justice in a society requires benefit maximisation of those who are least advantaged. Schemes like Lakshmir Bhandar have the potential of ensuring distributive justice where there is direct cash transfer to the poor and marginal people.

The scheme benefited people when the Centre has withheld payment for 100 days’ work under MNREGA for the last two years. The popularity of this scheme is on the rise. There is increasing zeal among the people to become beneficiaries of Lakshmir Bhandar. Not surprisingly, many other state governments have plans to introduce such schemes. In Maharashtra, Mukhyamantri Majhi Ladki Bahin scheme has been declared in the state budget this year which entails transfer of Rs 1,500 into the accounts of eligible women between the ages of 21 and 60 every month beginning July 2024. The scheme is on the lines of the Madhya Pradesh government’s Laadli Behna initiative.

Schemes of direct transfers to women have the potential of changing society, increasing consumption and strengthening the markets in rural India. So, it is not merely an election strategy but one that can transform the rural economy and yield long term results. As the Lakshmir Bhandar scheme continues to change lives in rural Bengal, it appears as a bright testament to the strength of targeted social welfare programmes in ensuring economic independence and empowering women, fostering a brighter and more inclusive growth for the poor in the state. (

The writer is on the faculty of the Department of Economics, Sister Nivedita University, Kolkata.)