Evaluating the Impact of the Laadli Behna Yojana in
Bhopal: A Critical Analysis of Universal Welfare and the
Freebie Debate in India
Abstract:
This paper examines the socio-economic impact of the Laadli Behna Yojana in Bhopal, Madhya
Pradesh, and situates the program within the broader discourse on universal welfare and the
freebie debate in India. Utilizing both primary and secondary data, the study investigates how the
scheme affects women beneficiaries in terms of economic empowerment, access to basic needs,
and perceived quality of life. Additionally, the paper critiques the policy design from an
economic and ethical perspective, questioning the implications of offering universal benefits
across income groups.
1. Introduction:
India has a long history of welfare schemes designed to uplift marginalized communities and
address socio-economic inequalities. In recent years, there has been a growing shift toward
universal welfare programs, often referred to as “freebies,” offered to large sections of the
population irrespective of income status. These schemes have sparked considerable debate
around their sustainability, effectiveness, and political motivations.
The Laadli Behna Yojana, launched by the Government of Madhya Pradesh, is one such
initiative targeting women by providing a monthly cash transfer. This scheme is positioned as a
means of empowering women and enhancing their financial autonomy. However, its broader
implications raise questions about universal welfare strategies and their role in governance and
electoral politics.
This paper aims to evaluate the impact of the Laadli Behna Yojana in Bhopal and examine the
policy within the framework of the national debate on freebies. The objectives include
understanding the socio-economic outcomes for beneficiaries, assessing policy effectiveness, and
analyzing the ethical and economic dimensions of universal benefits.
2. Literature Review:
Welfare programs in India have evolved from food-based subsidies to direct cash transfers.
Literature indicates that while targeted welfare can be more cost-effective, universal schemes
have the advantage of simplicity and broader political support (Drèze & Sen, 2013).
Studies on direct benefit transfer (DBT) mechanisms highlight improvements in delivery
efficiency and reductions in corruption (Kapur & Mukhopadhyay, 2019). However, critics argue
that universal freebies can lead to fiscal stress and reduce the incentive to work (Ravallion,
2020).
The debate on universal basic income (UBI) has gained momentum in India, particularly
following the Economic Survey of 2016–17 which proposed a quasi-UBI model. The political
use of freebies in elections has also been well-documented, showing a link between welfare
announcements and voter behavior (Vaishnav, 2017).
3. Research Methodology:
The research adopts a mixed-methods approach, combining quantitative and qualitative data
collection. The study focuses on a sample of 100 women beneficiaries in urban and rural areas of
Bhopal district.
Sampling Method: Stratified random sampling
Tools: Structured questionnaires, semi-structured interviews, and
focus group discussions
Sources of Secondary Data: Government reports, policy documents,
and academic articles
Analysis Techniques: Descriptive statistics, cross-tabulation, and
thematic content analysis
4. The Laadli Behna Yojana: Policy Overview
Launched in 2023, the Laadli Behna Yojana provides a monthly cash transfer of Rs. 1,000 to
eligible women aged 23–60, aiming to improve their financial independence. The scheme is
funded by the state government and implemented through direct bank transfers.
Eligibility is based on family income (below Rs. 2.5 lakh annually), absence of government job
holders in the household, and proof of residence. The policy is framed as both a welfare measure
and a strategy for gender empowerment.
5. Findings and Analysis:
Demographics: The majority of beneficiaries were from lower-middle-
income households, with limited formal employment.
Economic Impact: Over 70% reported that the cash transfer helped
them meet essential needs like groceries and medicines.
Social Empowerment: 55% felt more confident in making household
decisions, while 40% used the funds independently.
Challenges: Delays in payment, lack of digital literacy, and unclear
eligibility criteria were common issues.
Perceptions: Many saw the scheme as a lifeline, though some viewed
it as politically motivated.
6. Universal Welfare vs. Targeted Support: Ethical and Economic Considerations Universal
welfare schemes like the Laadli Behna Yojana raise complex ethical and economic questions.
While inclusivity avoids exclusion errors, it increases fiscal burden and may not effectively
prioritize the most needy.
Economists argue for targeted interventions to optimize public spending, while proponents of
universal benefits stress dignity and administrative simplicity. Politically, such schemes can
influence electoral outcomes, potentially blurring the line between welfare and vote-buying.
7. Discussion: The Laadli Behna Yojana has demonstrated potential in improving the financial
well-being of women in Bhopal, but it also exemplifies the challenges of universal welfare. The
trade-off between immediate relief and long-term empowerment remains delicate.
From a welfare economics perspective, the scheme offers positive externalities but may not be
sustainable without strong fiscal discipline. Comparative analysis with similar initiatives in
Tamil Nadu and Andhra Pradesh shows that long-term success requires robust monitoring and
periodic evaluation.
8. Conclusion and Recommendations: The Laadli Behna Yojana has positively impacted the
lives of many women in Bhopal, offering financial support and enhancing self-worth. However,
the policy’s universal nature invites scrutiny over resource allocation and long-term viability.
Recommendations:
Improve targeting to prioritize the poorest segments
Introduce financial literacy programs for beneficiaries
Strengthen monitoring mechanisms to ensure timely disbursement
Regularly evaluate the impact to guide policy adjustments
Future research should explore comparative studies across districts and states to better
understand the nuances of welfare efficacy and policy design.
References:
Drèze, J., & Sen, A. (2013). An Uncertain Glory: India and its
Contradictions. Penguin.
Kapur, D., & Mukhopadhyay, P. (2019). The Effects of Direct Benefit
Transfers in India. Brookings India.
Ravallion, M. (2020). Should We Give Cash to Everyone? Center for
Global Development.
Vaishnav, M. (2017). When Crime Pays: Money and Muscle in Indian
Politics. HarperCollins.
Government of Madhya Pradesh. (2023). Laadli Behna Yojana
Guidelines and Reports.
NITI Aayog Reports (2021–2023)
Ministry of Women and Child Development (India)
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