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Rising welfare costs push states to trim budgets, rethink policies

Rising costs, especially due to women's welfare schemes are straining state finances, forcing governments to cut spending, reassess policies, and even drop some existing schemes

Annual government spending has shot up. Fiscal deficit concerns remain. Between the Centre and states, sometimes one has scored over the other. An overview of government finances since 1975
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Imaging: Ajay Mohanty

Archis Mohan New Delhi

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Mounting debt and growing pressure to deliver on welfare schemes, especially monthly allowances for women, have forced several state governments to cut costs. Some are even considering scrapping existing welfare schemes to sustain the more essential ones, such as those announced for women beneficiaries. 
In Maharashtra, the Mahayuti government has decided to cut spending by 5 – 30 per cent across departments. It has instructed departments to reduce expenses on government vehicle purchases, fuel, and publicity by 30 per cent. Expenditure on overtime allowance, telephone and water bills, rent, and taxes is being cut by 20 per cent, as is