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India
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Jun 26, 2025
Elevated social spending strains state finances
India's 18 biggest states are set to ramp up spending on women-focused schemes, with a record ₹1 lakh crore earmarked for this year—mostly as a pre-election move.
This pushes social sector spending to a significant increase of 2% of their state economies.
TL;DR
Focus on women's welfare is welcome, say experts
Crisil Ratings points out that this jump is mainly about fulfilling election promises, since past years saw much lower budgets for these programs.
While the focus on women's welfare is welcome, experts warn that such heavy spending could limit funds for things like infrastructure and long-term growth, especially as state finances get stretched.