Why giving cash instead of creating jobs can be a problem 

In India, some governments win elections by giving people free money through special schemes instead of creating jobs. While this might seem helpful at first, it can create bigger problems in the long run.  

For example, in Maharashtra, a political group called Mahayuti won big by giving cash to women through a scheme called Ladki Bahin. Similarly, in Jharkhand, another scheme called Maiya Samman helped a party stay in power. Seeing this, different political parties started competing to offer more money. One party promised ₹1,000 per month to women, another offered ₹2,100, and then the ruling party raised it to ₹2,500.  

But here’s the problem: giving away so much money costs a lot. For example, the Ladki Bahin scheme costs ₹46,000 crore, and this amount will only grow if payments increase. No one is sure where this money will come from.  

Even worse, when politicians rely on cash handouts to win elections, they lose interest in solving the real problem—creating jobs. India has a lot of young people (over 65% of workers are under 35), but there aren’t enough jobs for them. Many graduates struggle to find work, and fewer people are working in industries like manufacturing than before. Some skilled and unskilled workers even leave India to find better-paying jobs in other countries.  

Instead of focusing on helping people earn a steady income through jobs, politicians keep using cash schemes because they work well to win votes. But this short-term solution harms the economy. It keeps India stuck in a “low-income trap,” where most people earn just enough to survive but don’t have the chance to grow financially. 

The big question is: how can India create more jobs and stop relying on quick fixes like cash handouts? That’s something leaders need to think about seriously.

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