FISCAL POLICY INSTITUTE

GOVERNMENT OF KARNATAKA
BENGALURU 560040

Public facing event on dissemination of research findings on

government guarantee schemes

5th November 2025

Trinity Hall, Taj M.G. Road, Bengaluru 560001

Background Note to the Event

In the State Budget 2023-24 (presented on 7th July 2023), Government of Karnataka announced
five new schemes called government guarantee schemes. First, Gruha Jyothi provides up to 200
units of free electricity per month to the resident households. Second, Gruha Lakshmi offers a cash
transfer of Rs. 2,000 per month to one woman head of a family. Third, Anna Bhagya provides an
additional 5 kg of food grains (rice) to every member of a BPL household and Antyodaya Anna
Yojana card holders. Fourth, Shakti provides free travel in non-luxury and non-AC government
buses (run by all State Road Transport Corporations) to all women, girl children and
transgender. Fifth, Yuva Nidhi provides a short and fixed term unemployment relief for those who
graduated and diploma holders in 2022-23.

Fiscal Policy Institute (FPI), under Finance Department of Government of Karnataka, has entered
into MoUs with leading academic and research institutions to assess the socio-economic impacts
of the above five government guarantee schemes in Karnataka. These institutions are King’s
College London, JustJobs Network, and XKDR Forum. In addition, collaborative research with
scholars at Azim Premji University, Indus Action, and Lokniti/CSDS have been initiated on the
impact assessment.

FPI is organizing this Public Facing Event on the Government Guarantee Research above for the
purpose of sharing the results and policy implications with the stakeholder departments in
Government of Karnataka and scholars from leading research and academic institutions.

This Background Note includes the Executive Summary of each of the five studies above. The
summaries highlight the key objectives, methods, data, key findings and policy suggestions.

We hope that this Background note is useful to prepare for your role in the Event and to provide
your valuable feedback on the above research for improvements in policy design, implementation
and outcomes of the Schemes.
In what follows, the executive summaries are organised in the following sequence of studies.
(a) From Guarantees to Rights: Assessing Karnataka’s Experiment with Basic Income and
Services (King’s College, London).
(b) An Assessment of Five Schemes in Karnataka (XKDR Forum)
(c) Impact Assessment of the Five Guarantees of the Government of Karnataka (in
collaboration with Lokniti-CSDS and Indus Action)
(d) Gender, Welfare, and Mobility: Impact of Shakti Scheme on BMTC Transport
Transformaiton (Azim Premji University)
(e) Fare-free Public Transit and Women’s Economic Participation – A JJN Report on
Karnataka’s Shakti Scheme

Page 1 of 1
FROM GUARANTEES
TO RIGHTS:
ASSESSING KARNATAKA’S
EXPERIMENT WITH BASIC INCOME
AND BASIC SERVICES
An Executive Summary
Title: From Guarantees to Rights: Assessing Karnataka's Experiment with Basic Income and Basic Services [An
Executive Summary]

Authors: Prabha Kotiswaran, Ashwin Belur, Madhusree Jana, Jannet Farida Jacob, Jehosh Paul, Nidhi C and Gale
Andrew

Report Design: Mrinalini Godara

Published: November 2025

This report is published as part of the Laws of Social Reproduction Project, which seeks to study women’s
reproductive labour across five sectors bridging the marriage-market continuum: sex work, erotic dancing,
surrogacy and egg donation, paid domestic work and unpaid domestic work. The project is headed by Professor
Prabha Kotiswaran at The Dickson Poon School of Law, King’s College London and is generously supported by the
European Research Council under the European Union’s Horizon 2020 research and innovation programme (under
grant agreement No. 772946).

For any inquiries or further information, please contact Professor Prabha Kotiswaran at
[Link]@[Link]

Citation: Kotiswaran, P., et al. (2025) From Guarantees to Rights: Assessing Karnataka's Experiment with Basic
Income and Basic Services [An Executive Summary]. The Laws of Social Reproduction Project, The Dickson Poon
School of Law, King’s College London.

This work is licensed under CC BY-NC 4.0. To view a copy of this license, visit
[Link]
 INTRODUCTION
In August 2023, the newly elected Congress-led government of Karnataka launched five guarantee schemes:
• Gruha Lakshmi: Rs. 2,000 paid monthly to one woman per household covering 1.28 crore beneficiaries with
a budget of Rs. 28,608 crore in FY 2025-26
• Anna Bhagya: 5 kg of rice per month to individuals covering 4.12 crore beneficiaries with a budget of Rs.
6,426 crore in FY 2025-26
• Gruha Jyothi: A zero-bill for households for less than 200 units consumed (200 kWh) covering 1.64 crore
beneficiaries with a budget of Rs. 10,100 crore in FY 2025-26
• Shakti: Free bus travel for women on all Karnataka Government non-luxury intra-state buses with 540.46
crore tickets issued as of August 2025 and a budget of Rs. 5,300 crore in FY 2025-26
• Yuva Nidhi: Unemployment assistance of Rs. 3,000 per month for recent graduates and Rs. 1,500 for diploma
holders with 4.23 lakh enrolled in Phase 1 and a budget of Rs. 600 crore in FY 2025-26

The Laws of Social Reproduction project undertook an empirical study of the state guarantees a year into their
rollout, setting out to ascertain women’s own views on unconditional cash transfers and assess both the intended
and unintended consequences of the guarantees.

METHODOLOGY
We adopted a mixed methods approach to study the impact FIGURE 1: MAP OF
of the guarantees. SURVEY DISTRICTS IN
KARNATAKA
• 12 pre-survey FGDs in February 2024 with 151
beneficiaries in Chamarajanagar and Koppal districts.
• A survey of 2,045 women across 6 treatment and 4
control districts (between October-December 2024).
◦ Treatment group (received Gruha Lakshmi) –
1234 respondents
◦ Control group (did not receive Gruha Lakshmi)
– 811 respondents
◦ 829 of 1234 treatment respondents received 4
schemes (except Yuva Nidhi)
• 19 post-survey FGDs in March 2025 and April 2025
with 130 beneficiaries, across 6 treatment districts
and 2 control districts. Treatment
Control

FROM GUARANTEES TO RIGHTS Executive Summary 1

Data Analysis: We used econometric methods of propensity score matching and entropy balancing, which helped
establish a causal link between any differences in outcomes we observed to the Gruha Lakshmi scheme.

KEY FINDINGS

ACCESS TO THE GRUHA LAKSHMI SCHEME

99.8% of the women stated that they received the full Gruha Lakshmi FIGURE 2: WHETHER GRUHA LAKSHMI
amount, however, a large portion of beneficiaries experienced PAYMENTS WERE DELAYED
delays of more than one month in receiving their payments. Among
those who faced delays, 56% of the respondents reported missing
payments for two months, while 22% experienced delays for No
22%
three months. Delays led to high levels of financial stress and loan
borrowings and worry that the scheme may stop. Husbands now lent
women money and expected repayment when the Gruha Lakshmi Yes
78%
amount arrived.

We asked the respondents, on a Likert scale, how they felt when they
received an SMS about receipt of payment. 98% reported feeling
either very happy or quite happy. Gruha Lakshmi is immensely FIGURE 3: CONTROL OVER
valuable to the women; they claimed its absence would be like losing GRUHA LAKSHMI AMOUNT
a hand or a well-meaning relative. No, 1%

99% of the beneficiaries reported having full control over their

money. The Rs. 2000 monthly payment by direct bank transfer
represented 13% of the household income for those in the treatment
group. The fact that a near total majority of women stated they had
Yes
complete control over the Gruha Lakshmi amount is indicative of 99%
the success of the scheme in facilitating a measure of financial
independence for the beneficiaries.

IMPACT OF GRUHA LAKSHMI

EXPENDITURE PATTERNS

The scheme amount was largely spent on food, household expenses, medicines and children’s fees. The scheme led
to reduced spending for the household on electricity, cooking gas, and mobile phone recharges; with the impact
on electricity likely an effect of Gruha Jyothi. We also saw lower spending on beauty services, entertainment, and
festivals. The impact on spending in other categories was not statistically significant. In the FGDs, we found a
handful of women who could save the Gruha Lakshmi amount to invest in gold, appliances, house construction,

FROM GUARANTEES TO RIGHTS Executive Summary 2

school fees, life insurance and post office savings. But beneficiaries consistently spoke of the sharp pain of
inflation, which dulled the positive impact of the cash transfer. Inflation was widely thought to result from the
guarantees.

FOOD CONSUMPTION

We found a significant increase in consumption of five out of seven meals throughout the day and increased
frequency of consumption on a daily and weekly basis by between 3% and 12% in six out of nine food groups:
pulses, greens, dairy, fried foods, aerated drinks, and fish. However, we did not see much in the way of increased
consumption of each of the twelve food groups over the past twenty-four hours.

FINANCIAL INCLUSION AND FINANCIAL WELL-BEING

82% of the respondents felt that the Gruha Lakshmi scheme enabled women to better access financial infrastructure.
We found an increase in beneficiaries having and operating their own bank account by 8% and 15% respectively.
Gruha Lakshmi is pushing women toward mainstream banking systems and strengthening their financial inclusion.
However, we also found a 9% reduction in visiting the bank alone and a 6% increase in requirements to ‘pay for
cash’ at customer service points.

A large majority of Gruha Lakshmi beneficiaries reported clear gains in confidence, autonomy and financial well-
being across 6 parameters pointing to a widely shared sense of empowerment and relief.

FIGURE 4: BENEFICIARIES' PERCEPTION OF GRUHA LAKSHMI'S IMPACT ON FINANCIAL WELL-BEING

Spend without getting

permission from husband 96%

Husband trusts more to

handle finances 96%

Feel resilient during

times of emergency 98%

Feel like an asset

instead of a liability 89%

Relief from stress and

anxiety of financial burden 94%

Feel self-sufficient and

a sense of autonomy 92%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

WOMEN’S PAID AND UNPAID WORK

44% of the treatment group and 33% of the control group engaged in paid work. In and of itself, the Gruha Lakshmi
did not cause women to either take up more paid work or leave paid work or substitute undesirable employment
with better employment. Women wanted regular work that generated steady income and were not inclined to take

FROM GUARANTEES TO RIGHTS Executive Summary 3

the risk of becoming entrepreneurs. While Gruha Lakshmi could have emboldened them to take a loan to start a
business, its erratic disbursement and the larger backdrop of inflation prevented women from using it in this way.

On average, those in the treatment group spent 7.7 hours on unpaid work daily and those in the control group
7.3 hours. The treatment group spent 18 minutes more on unpaid work relative to the control group, particularly
on agricultural work and tending livestock, which is a contribution to economic activities and likely to generate
income over time.

Beneficiaries reported mixed impact of the Gruha Lakshmi scheme on the recognition, respect, reduction and
redistribution of unpaid domestic and care work, with a modest increase in respect for and recognition of unpaid
work, and only 2-4% seeing any reduction or redistribution of unpaid work.

FIGURE 5: BENEFICIARIES' PERCEPTION OF GRUHA LAKSHMI'S IMPACT ON UNPAID DOMESTIC AND CARE WORK

No Not sure Very little/Some Yes, definitely

Whether greater
recognition of your work? 41 27 12 20

Whether family members

respect you more? 32 26 14 28

Whether unpaid work is

reduced in any way? 63 32 3 2

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

61% of the beneficiaries reported no increase in support with unpaid work from other household members, 32%
reported mild change or were uncertain, and only 4% felt that others in the home had started helping more after
they began receiving Gruha Lakshmi.

INTRA-HOUSEHOLD BARGAINING POWER

We found that beneficiaries of Gruha Lakshmi had 5% more voice in large purchases and 6% more voice in the
final decision on large purchases. Interestingly, they had 10% more say over how their husbands' earnings are
utilised, possibly signifying the power in having and controlling their own money from Gruha Lakshmi. Despite the
cash transfer, the vast majority (92%) said that decision-making around their healthcare hasn’t changed; only 8%
said that there had been a shift in their ability to make decisions about visiting family or relatives.

CONFLICT AND VIOLENCE

We did not find any statistically significant increase across 16 different kinds of emotional, physical, and sexual
conflict and violence for the treatment group. Nearly half of the respondents (48%) felt that the Gruha Lakshmi
scheme had reduced day-to-day conflicts within their households, with 42% reporting no noticeable change, and
the remaining 10% believing that conflict had actually increased.

FROM GUARANTEES TO RIGHTS Executive Summary 4

IMPACT OF ANNA BHAGYA
In February 2024, we found that the Rs. 170 cash transfer in place of 5 kg of rice was widely seen as insufficient,
especially since the PDS rice was often unavailable or of poor quality. The survey revealed that among the Anna
Bhagya beneficiaries in the treatment group, a majority (95%) preferred in-kind (ration) transfer, specifically, dal
(pulses) (86%), followed by oil (85%), millet (68%), jowar (58%), ragi (56%), and flour (48%). Given tremendous
food inflation, Anna Bhagya was considered more central than even Gruha Lakshmi.

IMPACT OF GRUHA JYOTHI

In February 2024, the Gruha Jyothi scheme was the most popular amongst the four guarantees. Women appreciated
the reduction in electricity bills and the ability to run appliances like mixer-grinders without the fear of cost. When
asked if there are additional savings from electricity bills due to the Gruha Jyothi scheme, 89% reported that they
are able to save, 10% reported no savings. Among those who reported additional savings, 53% saved between
Rs. 100-500, while 35% reported saving more than Rs. 1000. 94% of the treatment respondents reported using
the savings for routine household expenses. Respondents also reported increased safety and reduced violence
against women.

IMPACT OF SHAKTI
In both groups, a majority reported that the Shakti scheme enabled travel to new places. A key difference is
observed in employment decisions; none of the control group attributed job decisions to Shakti, while 46% of the
treatment group said Shakti influenced their employment decisions. In terms of broader work-related mobility,
49% in treatment group reported an increase in travel for jobs or skill development, compared to only 14% in the
control group.

Women appreciated the reduced cost of travel and noted positive effects on the local economy. However, buses
were overcrowded, sometimes unsafe, and conflicts between male and female passengers were frequent. Men
reportedly refused to give up seats, arguing that women were not paying fares. In some areas, buses skipped
stops during peak hours, forcing women to walk home or hire expensive autos, many of which had hiked fares.
Mothers especially worried about school commutes for children and mentioned safety and reliability concerns.
Some women reported a negative impact on the village economy and on husbands who were drivers or private
transport providers. 13% of the women wanted the Shakti scheme to be stopped and replaced with scholarships
or job creation. Others wanted improved bus frequency on busy routes and for the scheme to be limited to school-
going children.

FROM GUARANTEES TO RIGHTS Executive Summary 5

 RECOMMENDATIONS

Recommendations from Beneficiaries of Gruha Lakshmi

» Continue Gruha Lakshmi scheme as is (81%), increase the amount (46%).
» 34% wanted all women to receive Gruha Lakshmi.
» 42% wanted cash transfers, 33% jobs and 26% both.

Recommendations for an Inclusive and Gender Transformative Welfare Regime

» Embed Gruha Lakshmi in a Right to Care Law.
» Define the purpose of the Gruha Lakshmi scheme; clarify aims and objectives and a clear vision.
» Provide women with local decent work.
» Stronger messaging on the recognition of unpaid domestic and care work.
» Adopt measures for reduction and redistribution of unpaid domestic and care work.
» Involve gender experts as stakeholders for regular impact evaluations of the guarantees.
» Amplify empowerment effects of Gruha Lakshmi, explore Gruha Lakshmi SHGs/Collectives.
» Make welfare inclusive by reducing onerous application processes and facilitating public registration drives.
» Disburse Gruha Lakshmi regularly on a fixed date even if less frequently (say once in two months) to halt
backsliding and backlash and secure empowerment and dignitary effects for women.
» Deliver financial literacy modules on loans, savings, investments through mobile phones and improve adult
literacy through rural libraries.

Recommendations on Anna Bhagya

» Reconsider the government’s pause on the issuance of new ration cards (except for priority categories of
households) so that newly formed households in need of food subsidies can access them.
» Urgent reforms are needed for issuing ration cards to make the application process accessible and inclusive
of destitute, single, homeless, migrant and elderly women.

Recommendations on Gruha Jyothi

» Those with solar rooftop installations should not be excluded from accessing the Gruha Jyothi scheme; this
is needed so as to enable a transition to a carbon free future.
» The Gruha Jyothi scheme must also be leveraged to provide women an alternative to expensive LPG gas
cylinders and the continued, polluting and harmful use of firewood for cooking (through alternatives such
as induction stoves), and water heaters, solar cookers and washing machines that operate off the grid.

FROM GUARANTEES TO RIGHTS Executive Summary 6

Recommendations on Shakti
» Expanding road and bus connectivity, increasing fleet strength, improving facilities at bus stands, and
aligning routes and schedules with women’s work patterns would significantly enhance accessibility and
reliability.
» To understand women’s unique transport use and needs, smart cards need to be issued so that gender
responsive changes can be implemented.
» Safety measures such as well-lit bus stops, CCTV cameras, and accessible communication channels are
equally critical to ensure secure and dignified mobility.
» Sustained awareness campaigns, grievance redressal systems, and participatory review mechanisms, along
with embedding the right to free transport in law, are necessary to ensure the scheme’s long-term success.

CONCLUSION
Karnataka’s bold experiment in providing universal basic services along with an UCT for women is laudable.
However, fiscal pressures, impediments to inclusion, and infrastructural concerns threaten to undermine their
benefits. There must also be efforts at increased synergies between the guarantees to realise the state’s social,
economic, environmental and development goals.

FROM GUARANTEES TO RIGHTS Executive Summary 7

 Contact Us:
The Dickson Poon School of Law
King's College London
Strand
[Link] London
lawsofsocialreproduction WC2R 2LS
LawsOfSocialRep United Kingdom
lawsofsocialreproduction4773 +44 (0)20 7836 5454
AN ASSESSMENT OF FIVE SCHEMES IN KARNATAKA: REPORT 3
XKDR FORUM
MAY 15, 2025

EXECUTIVE SUMMARY

Page 1 of 5
Context
The Government of Karnataka launched the five guarantee schemes in July 2023. These included
Annabhagya (grain transfer to AAY/PHH households), Gruhalakshmi (Rs 2000 per month cash
transfer to woman head of household), Gruhajyothi (free electricity up-to allowance), Shakti (free
bus mobility for women), and Yuvanidhi (unemployment allowance to recent graduates/diploma
holders).

Objectives
We study observations of the behavioural responses of households in Karnataka to answer the
following questions:
1. Has the benefit of the schemes reached households in Karnataka?
2. How have the activities of the households changed after the introduction of the schemes?
3. Have the changes been because of the schemes?

Data and Methods

We use the Centre for Monitoring Indian Economy’s Consumer Pyramids Household Survey
(CPHS) as a monitoring system about household responses on a regular basis. CPHS is a micro-
survey on Indian households, running since 2014. Each survey run (called a ‘wave’) is done thrice a
year. Each run captures information about both individuals and their households, for the previous
four months. The broadest stratum of the survey is a Homegenous Region (HR). Each HR is
organised as a collection of contiguous districts within the state. Districts within an HR are similar
in agro-climatic features, urbanisation and female literacy. The survey is conducted independently
of when schemes and policy interventions are planned and conducted.

We study trends and patterns of the behaviour of Karnataka household for 12 months of 2022 as the
period before the five schemes were introduced in July 2023, and for 12 months of 2024, as the
period after the schemes were announced. We examine the impact of the guarantee schemes on
household behavior both as the overall annual behaviour in the pre-scheme and post-scheme
periods, as well as the monthly variation in these periods. There are two points of comparison for all
observations. A first comparison is of the annual behaviour of the sample of Karnataka households
against the sample of all India households. A second comparison is with households in border
regions of neighbouring states that did not undergo the schemes (which are taken as a control
sample to the Karnataka treatment sample). In the following, we highlight headline findings and
their policy implications.

Page 2 of 5
Findings and Policy Recommendations
1. The analysis starts with an understanding of median monthly income transfers received by
households, household income, household expenditure, and household expenditure
volatility.
2. We observe high operational efficiency by the Karnataka state in delivering income transfer
to the households in the state. A large share of the households are now receiving transfers.
The median monthly Karnataka household receipt of government transfers was at Rs.0
before the schemes and Rs.170 in 2023. This was about Rs.2425 a month in 2024, summed
over all schemes. There has been no similar rise in the all India sample, or in the
neighbouring HRs (control) sample. The fraction of households receiving any transfer from
government in Karnataka rose from 9.3% in pre-scheme period (2022) to 72.7% in the post-
scheme period (2024).
3. The nominal median monthly income of households has increased statewide. However,
Karnataka’s income growth in the pre-scheme (2022) to post-scheme period (2024) of
Rs.22,100 to Rs.27,080 lags behind the overall India sample growth (Rs.18,425 to
Rs.25,000), particularly in urban areas (Rs.24,100 to Rs.27,755 in Karnataka versus
Rs.20,000 to Rs.27,750 nationally).
4. The income growth in Karnataka has not led to lower consumption volatility. We observe
high expenditure volatility in Karnataka households, possibly indicating a volatile economic
environment in the state. A factor could be the fluctuations of subsidy payments at different
months in the post-scheme period. Once households develop confidence about the reliability
of these transfers, they will be better able to make financial and livelihood plans around
them. Towards this, the government needs to improve the administrative processes and
underlying public finance systems so as to achieve predictable delivery. A greater focus on
improving access to formal sector finance to facilitate savings would also help.
5. Household expenditure on food has reduced since the Annabhagya scheme was introduced.
However, the expenditure on food is volatile in Karnataka, as is the volatility of total
household expenditure. This phenomenon suggests the presence of considerable economic
volatility. Further research is required in order to understand the drivers of high levels of
volatility.
6. A large number of households in Karnataka have zero electricity expenditure. 63.1% of
households in Karnataka pay zero electricity bills in 2024, compared to only 22.8% in India.
In any fresh design of the GruhaJyoti scheme, there is merit in aiming for the fraction of

Page 3 of 5
 households in Karnataka with zero electricity expenditure to be closer to 10 to 15 percent,
which is lower than the all India numbers. Given that Karnataka is a more prosperous state
than the rest of India, there is merit in aiming for the Karnataka median household spending
more on electricity as compared with the overall Indian sample.
7. There is no clear evidence of higher role of women in intra-household resource allocation.
One observation is about the expenditure on women-centric items by households in
Karnataka versus households in neighbouring HRs. There was an increase in such items in
Karnataka households – from Rs.1807 in 2022 to Rs.2665 in 2024. However, this gain was
not higher than the gain seen in neighbouring HRs in other states. There is also no
significant increase in household ownership of appliances (such as washing machines which
might reduce the workload of women) in Karnataka households. It is important to
underscore that social change is a slow process, and behavioural changes take time to
materialise. Also, women may be choosing to use the funds in other, unmeasured ways that
still increase their well-being, such as contributing to household savings, paying down debt,
or supporting children’s education. More research is required in order to disentangle the
effects.
8. Travel by women rose in the months immediately after the Shakti scheme was launched, but
dropped six months after. However, during the post-scheme period, there has been a decline
in the monthly household expenditure on public transport by the median Karnataka
households. These observations – of a rise in the short term followed by a drop in the longer
term -- are consistent with other research about this scheme, some of which lists lack of
security, and the fear of facing the ire of other travellers who have been crowded out of
limited transit capacity among other reasons.
9. We observe that there is a bigger problem of women labour force participation (LFP) in
Karnataka to solve. Karnataka’s female LFP lags behind what is observed in neighbouring
HRs. This requires a deeper look at the problems of the labour market in Karnataka, going
beyond the schemes. As an example, the Karnataka rules on minimum wage may crowd out
wages from private employment (the CPHS data shows a median household income of
Rs.27,000 per month). The minimum wage can become a significant barrier to formal
employment, particularly for women who are often at the margin of the labour market. A
lower minimum wage level may be optimal in order to prevent such crowding out and to
incentivise a larger fraction of the population into the labour force. The minimum wage is
only one of the many elements of government policy that shape private investment and a
successful economy.

Page 4 of 5
10. Similarly, the Yuvanidhi scheme can have adverse impact on graduate LFP. We observe that
households with graduates/diplomas in Karnataka are much more likely to obtain welfare
payments, when compared with neighbouring regions. When young graduates have more
money in hand, this is likely to make them less inclined to accept job offers. The scheme, as
designed, likely increases the reservation wage of graduates, potentially delaying their entry
into the workforce. Global evidence shows that early career experience is critical for long-
term wage growth. The policy may be inadvertently incentivising a delay that harms long-
term career prospects.
11. One recommendation is to consider scheme consolidation in order to improve administrative
efficiency. There are multiple welfare schemes by the state government which amount to
different rules for delivery of cash to households. It would be administratively efficient to
consolidate them into a single cash transfer scheme with a careful set of rules for defining
eligibility. For example, consider that there could be just two welfare schemes in order to
achieve similar objectives as the current five schemes: free public transport for women, and
a cash transfer mechanism with certain eligibility rules.
12. Schemes have trade-offs in the broader domain of the use of public funds. There is an
opportunity cost of public resources allocated to the schemes. If, hypothetically, the same
money was channeled into public goods, there would be been magnified economic gains for
the state. Welfare schemes, however well-implemented, are not a substitute for a
comprehensive economic growth strategy.
13. One factor that might be impeding this is difficulties in state public finance. By this
reasoning, one pathway to consider is (a) An overall strategy of fiscal prudence through
which the treasury is always able to make the payment of Rs.2000 to a certain list of
beneficiaries on the first of every month and (b) Scaling down the number of beneficiaries
so as to reduce the requirement of cash on the first of each month. A focus on a higher
growth strategy in the state is key.

*************************

Page 5 of 5
 IMPACT EVALUATION OF THE FIVE GUARANTEES
OF THE GOVERNMENT OF KARNATAKA

EXECUTIVE SUMMARY
OCTOBER 2025

Independent Study with Scheme, District & SDG Findings

Tara Krishnaswamy, Independent Policy Consultant

with
Lokniti-Centre for the Study of Developing Societies (CSDS)
and
Indus Action Initiatives
 1. Summary

The 5 Guarantees of the Government of Karnataka — Anna Bhagya, Gruha Lakshmi, Gruha
Jyo , Yuva Nidhi and Shak — are welfare schemes to provide food security, basic income,
baseline electricity, unemployment insurance and free mobility to families in the lower
economic strata. Gruha Lakshmi and Shak being directed at women, they also intend to
reduce gender inequali es by enhancing women's agency and nancial independence.

This independent state-wide, mixed-methods impact evalua on of these schemes is on

women heads-of-households (HoHs) from lower-income families. Results show that 85-91%
of respondents spend savings or earnings from the schemes on nutri on and healthcare.
85-90% bene ciaries report be er nutri on, health and educa on access for their families.
80-93% report that their personal nancial independence, well-being, self-con dence and
decision making role in the family have increased. 95% report nancial upli ment through
Gruha Lakshmi. 19% respondents have gained new or be er-paying employment via Shak ,
87% save up to Rs 1000 per month via Gruha Jyo . 28% use Yuva Nidhi for skilling.

Based on this, the conclusion is that the 5 Guarantees largely meet their objec ves. A few
changes are recommended. Women need Gruha Lakshmi cash to be transferred monthly
with clockwork, Anna Bhagya should provide nutri ous ra ons, not cash or vouchers, Gruha
Jyo bills should be more readable, and more buses, frequency and coverage are required of
Shak . The communica on of the schemes as 'freebies', is damaging to the bene ciaries and
the report o ers several correc ve measures. Grievance redressal avenues are missing.

2. Purpose and Scope

What is this study?

This study measures the combined and individual scheme outcomes of the 5 Guarantees on
women HoHs from the lower economic strata and their families. It conducts district-wise
evalua on upon food and nancial, security, health, educa on, mobility and employment. It
also assesses ease of access and delivery e ciency. The study maps outcomes to UN
Sustainable Development Goals (SDGs) and o ers recommenda ons for ne-tuning.

Why is it important?

The 5 Guarantees were proposed during the 2023 state elec on campaign, cos ng Rs 52,000
crores to the exchequer. A systema c, objec ve, independent and credible assessment is
crucial to enable transparency of outcomes, provide evidence and insights to bureaucrats
and administrators, to re ne the schemes, and mould public percep on.

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 The author acknowledges the invaluable support of Mr. L K Atheeq, IAS, Ms Uma
Mahadevan Dasgupta, IAS, and the Fiscal Policy Ins tute (FPI) of the GoK, par cularly, Dr.
Vishal R, IAS, and Professor MR Narayana.

The study is dedicated to the women of Karnataka, on whose relentless labour, the state
makes economic strides. They kindly shared their personal reali es for the furtherance of
welfare governance

3. Project Design and Methodology

The study was conducted state-wide from July 2024 to July 2025, on women HoHs who are
bene ciaries of two or more of the 5 Guarantees (to avoid being reduced to an Anna Bhagya
survey). It covered all four administra ve divisions. Study loca ons were iden ed
purposively, using Gruha Lakshmi saturated villages along with demographic characteris cs,
viz., religion, caste, rural/urban, age, and educa on level. Distribu on of respondents skews
towards socio-economically weaker communi es, as more are eligible for the schemes.

A pre and post test design to compare the e ects before and a er the introduc on of the
schemes was not possible. It is a non-experimental design and a mixed-methods study, with
quan ta ve eld surveys in 15 districts - Bagalkote, Belagavi, Bengaluru Rural, Bengaluru
Urban, Bidar, Chikkamagaluru, Dakshin Kannada, Davanagere, Hassan, Kalaburgi, Kolar,
Mandya, Tumkuru, Vijayanagara, Vijayapura - and qualita ve data collec on in ve districts.

Ques onnaire-based data from the quan ta ve survey, and in-depth perspec ves, from the
qualita ve study were analysed and consolidated into a Consolidated Impact Evalua on
Report, of which, this document is the execu ve summary.

The quan ta ve survey was administered to 6125 samples across 15 districts; 400 per
district, and 100 per taluk within each district. Sixty eld inves gators (FIs) from the
Department of Poli cal Science, Bangalore University were trained and deployed to
interview female HoHs at their residences, using a smart-phone app-based ques onnaire.
Qualita ve discussions were held with about 200 respondents in two villages each, of
Bengaluru Urban, Tumkuru, Bagalkote, Dakshina Kannada, and Kalaburgi. FIs from
Tumakuru University, Department of Social Work, were trained and deployed for
conversa ons with individual bene ciaries, Focus Group Discussions with Self-Help Groups,
and ecosystem stakeholders (includes men), like Anganwadi workers, bus conductors, Food
and Civil Supplies Inspectors, panchayat members, etc..

The author, Tara Krishnaswamy, led the study, engaging Lokni -CSDS for the quan ta ve
por on of the data collec on and Indus Ac on Ini a ves for the qualita ve conversa ons.

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 4. Key Findings

Demography: 76% of the respondents are rural, 61% over thirty ve years of age, 34% are
SC/STs, 50% are OBCs and only 27% have educa on levels above the tenth grade. All
respondents used two schemes; 78% used three, 61% used four, and 3% used all schemes.

A. Impact on SDGs: Graph 1, Graph 2, Graph 3

• SDG 1, No poverty: 84% of respondents say that the schemes reduced their family's
nancial stress. 89% report a boost to women's own nancial upli ment. 87-95% saved
up to Rs 1000 from Gruha Jyo , and up to Rs 1000 from Shak , added to the Rs 2000
monthly from Gruha Lakshmi.

Graph 1: Spending Priorities of Bene ciaries on their Families

Food

Health

Education

Family
Loan

• SDG 2, Zero hunger: 91% of respondents use the money received or saved to augment
family diet with pulses, vegetables, fruits, eggs and meat. 95% report be er family diet
and food security. Spending priori es expose food insecurity in low income families.

Graph 2: Perception of Improvement in Quality of Life: SDGs 1,2,3,4

Better

Better

Better

Reduced

Improved

• SDG 3, Good health and well-being: 85% deploy funds for medical expenses, doctors,
tests, hospital bills and medicines. 90% have increased access to healthcare; 75% report
improved well-being. Spend reveals unmet health needs in low income families.

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 • SDG 4, Educa on: 52% spend more on educa on and 85% perceive improved access to
educa on for the family. 54% report increased access for women's own educa on.

• SDG 5, Gender Equality: On personal impact, about 80% report improved nutri on,
healthcare, nancial independence, self-con dence and empowerment of themselves.
93% say that their family standing has improved. Most priori se family needs over
selves, which may indicate lesser agency.

Graph 3: Assessment of Bene ts to Self: Gender Equity, SDG5

Standing

Self

Own

Own

Own

Financial

Travel

Friendships

Engagement

Own

B. Scheme-Wise Insights

• Anna Bhagya: 88% families eat more quan ty in the meal or more nutri ous meals by
using savings from schemes on supplemen ng their diets. 94% feel nancially upli ed.
• Gruha Lakshmi: 88% bene ciaries have more say in family decisions due to money at
hand. They make household purchasing decisions on groceries, children's fees,
medicines, etc. 73% see improved social standing and 95% report nancial upli ment.
Elderly women report dignity of life from not depending on children for basic needs &
medicines. 40% use the money to reduce debt. Notable debt in low-income families.
• Gruha Jyo : 82% use more lights, 30% use more appliances and 43% purchased new
appliances. 89% see improved family rela ons due to less stress between family
members from more lights, kitchen appliances, etc. 92% report nancial upli ment.

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 • Shak : 19% found a be er-paying or new job due to Shak . 83% report increased
healthcare access; 67% travel independently for work and leisure. 60% women feel the
scheme builds sisterhood from traveling together with friends; 49% a end public
programs like Grama Sabha, Union mee ngs, trainings, community func ons, etc.
Women report that it brings families together more o en.
• Yuva Nidhi: 28% used it to gain skills while 20% used it for nancial stability.

C. District-wise Insights

• Scheme Satura on Amongst Respondents: Shak has the highest use rate at 96%;
Anna Bhagya is 94%, Gruha Jyo is 82%, Gruha Lakshmi is 78%, and Yuva Nidhi is 7%.
Districts falling well below these medians may have access gaps and require further
administra ve inves ga on.

• Bengaluru Division: Kolar, Gruha Jyo satura on in the sample is 29% points lower.
In Bengaluru Rural, Shak is 11% points lower, Gruha Jyo 14% points lower, and
Gruha Lakshmi, 26% points below. the median for the state.
• Mysuru Division: Gruha Lakshmi satura on in Dakshina Kannada is 29% points
lower, while Gruha Jyo satura on in Chikkamagaluru is 41% points below the
median in the sample pool.
• Belagavi Division: Vijayapura has low per capita income levels, but is 9% below
median on Gruha Lakshmi penetra on.
• Kalaburgi Division: Kalaburgi is 31% points below the median on Gruha Jyo
implementa on, poin ng to delivery issues.

• Women's Percep on of Impact on Themselves: The median for respondents'

percep on of improvements to their own nutri on is 83%, access to health, doctors,
medicines, etc., is 85%, and access to educa on, training, skilling, etc., is 59%, well-
being is 85%, nancial security, is 84% and, self-con dence and empowerment, is 81%.
When district percentages are below the medians, it indicates smaller improvements.

• Bengaluru Division: At 47%, the Bengaluru Rural respondents' perceived impact on

educa on is below the state median. At 64%, Davanagere outperforms the median
on educa on, well-being, nancial security and empowerment.
• Mysuru Division: Mandya bene ciaries' percep on of increased access to educa on
is only 34%, while Chikkamagalur, at 75%, is the highest in this division.
• Belagavi Division: On nutri on, Bagalkote, at 61%, is far below the median.
Vijayapura is below on all parameters except nutri on.
• Kalaburgi Division: On educa on, Bidar falls below by 50% points and Kalaburgi by
32% points. Vijayanagara springs a surprise with 83% women ra ng the 5
Guarantees as improving their educa on.

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 • Impact on Families: Purchase of food items is the biggest use of savings from the
schemes across all districts except Dakshin Kannada, Bengaluru Rural and Vijayapura.
With low per capita income and HDI, Vijayapura's spend on diet is hard to ra onalise.
Health expenditure is very high across all districts except Dakshin Kannada, Bengaluru
Rural, and Belagavi (which has very low HDI). Loan repayments are high in Belagavi and
Hassan at 46%, and Davanagere at 66% of respondents!

• Impact on Employment Graph 4 is the impact of Shak on bene ciaries' employment.

34% report new or be er employment in Bengaluru Urban, 44% in Chikkamagaluru,
over 20% in Dakshin Kannada and Mandya, and over 25% in Hassan and Kolar.

Graph 4: Shakti’s Impact on Employment - New or Better-paying Job

Bagalkote 4%

Belagavi 14%

Bengaluru Rural 22%

Bengaluru Urban 34%

Bidar 5%

Chikkamagaluru 44%

Dakshin Kannada 22%

Davanagere 17%

Hassan 28%

Kalaburgi 14%

Kolar 28%

Mandya 22%

Tumkuru 12%

Vijayanagara 6%

Vijayapura 6%

D. Delivery Process Insights: 40% of bene ciaries are unaware of grievance redressal
mechanisms, across all schemes. Gruha Jyo is the most problema c at 64%.

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 5. Recommenda ons

I. Ease of Access : Provide informa on for enrolment, grievance redressal, etc. through
Panchayats, Anganwadis, post-o ces, banks and other channels with human interfaces.

II. Financial and Digital Literacy: Provide skilling via Anganwadis, Panchayats, and SHGs, for
nancial, mobile, ATM, Whatsapp, etc. literacy.

III. Hunger and Health: 85-90% bene ciaries spend their savings on food and healthcare.
These unmet needs re ects in NFHS 5 also. Conduct a detailed consump on expenditure
survey for further policy formula on.

IV. Schemes Changes:

• Anna Bhagya: As an excep on, enrol highly deprived nomadic tribes, PVTGs, sanita on
workers, etc., with manual veri ca on by the 5 Guarantees Authority in Panchayats.
Women prefer grains over DBT; vouchers more liable for sale and misuse.
• Gruha Lakshmi: Ensure monthly transfers for mely loan repayments, school fee
instalments, etc. Disseminate monthly DBT status with in ma ons in Kannada.
• Shak : Increase the number of buses (buy diesel buses), frequency and ra onalise
routes to further boost women's employment.
• Gruha Jyo : Bill format is esoteric and hard to decipher, especially with payment
arrears. Simplify the format, calling out charges, subsidies, arrears and, savings.
• Yuva Nidhi: Absorb graduate unemployed for 6 months to one year as temporary
contractors to ll government vacancies by providing appropriate skilling.

V. Districts: Bengaluru Rural has lower adop on of Gruha Lakshmi, Gruha Jyo and Shak ,
and Kolar and Kalaburgi's Gruha Jyo satura ons are low. They may need inves ga on
for administra ve, access and delivery sub-op mali es. Kalaburgi has over one-third of
families repor ng food insu ciency while Bagalkote bene ciaries spend 22% below the
median on own nutri on (pulses, vegetables, milk, eggs, meat, etc.). Both require
follow-up. In Hassan and Davanagere, half to two-thirds bene ciaries report loan
repayments, which could indicate a brewing debt crisis. Belagavi's intensity of poverty
requires ac on due to low spend on health, and 50% spend on repaying loans.

VI. Guarantees Communica on: Public and media percep on has led to awed branding of
the 5 Guarantees as, 'freebies,' rather than as social security and welfare. Emphasise
nancial savings, improved nutri on, health, educa on, mobility, and quality of life
from the consolidated report to bene ciaries themselves, public, and media. Posi on
Gruha Lakshmi as basic income for unpaid household labour, an en tlement, and not as
patronage. Currently, some recipients feel 'undeserving' due to these pejora ves.

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 6. Conclusions

Based on the results, the schemes meet their stated objec ves of enhancing food and social
security, mobility, nancial independence and autonomy of bene ciaries. They narrow
gender gaps in nutri on, health, educa on and agency. They stack up well against SDG
targets, directly addressing nuanced issues like gendered poverty and climate resilient
gateways to public life and economic opportuni es.

The schemes do not increase large-scale employability, employment and economic growth,
but do enable the seeking of a be er or new jobs, and stemming of economic distress.
Financial distress is evident across all districts, and is par cularly pronounced in some. While
the 5 Guarantees are useful in making a dent against debt, it needs targeted interven ons.

Barring Yuva Nidhi, the schemes have powerful outreach and high satura on levels in the
sample pool, indica ng ease of access and high relevance to public needs. Gruha Lakshmi is
consequen al policy for women, radically improving diets, access to health, and educa on,
while preserving dignity, and enhancing their decision-making, and family standing. The
inser on of free mobility, Shak , is a root-cause approach to gender equity that has yielded
bene ts beyond what was envisaged for women's independence, like family rela onships,
female friendships, and par cipa on in public life, expanded earnings, and increased access
to health and educa on. Gruha Jyo has increased lower economic-strata families' access to
a basic amenity, coupled with monthly savings. Yuva Nidhi, has enabled skilling and rendered
a modicum of nancial stability, both to a limited degree.

Bene ciaries perceive a paucity of bilateral communica on and sub-op mal channels with
respect to grievance redressal and ease of use of schemes.

O cial communica on under-emphasises the transforma ve nature of the 5 Guarantees to

the public and media. The evidence from this study, and others, could be u lised to elide the
'freebies' moniker and rebrand the schemes accurately, as social security and welfare
policies, and en tlements for sustainable and equitable development.

"I earn Rs 1500 per month from Beedi work which is not enough for my needs and it is
awkward to ask my sons. Gruha Lakshmi covers my medical needs for high BP, diabetes
medicines and household expenses." — Senior Ci zen Bene ciary, Dakshin Kannada

Appendix: Consolidated Impact Evalua on Report: <[Link]/ImpactEval-FinalReport>. This has

links to the quan ta ve and qualita ve reports.

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Gender,
Welfare,
and Mobility
Impact of Shakti Scheme on
BMTC Transport Transformation

Tamoghna Halder, Arjun Jayadev

Centre for the Study of the Indian Economy (CSIE)
 Extended Executive Summary
Tamoghna Halder and Arjun Jayadev

1.​ Context
The Shakti scheme, launched by the Government of Karnataka in June 2023, introduced free bus
travel for women across the state’s public transport networks. Conceived as an initiative to
promote women’s mobility, safety, and economic inclusion, the scheme marks a significant step
in reimagining mobility not as a gendered privilege but as a public right.

The scheme adds to a series of welfare policies that acknowledge the economic and social
barriers that limit women’s participation in both the workforce and access to public spaces. By
removing the fare barrier, Shakti scheme offers potential long-term benefits that outweigh the
short-term fiscal cost – for example, increased labor market participation, reduced household
expenditure, and improved access to education, healthcare, and social networks. From a policy
perspective, Shakti challenges conventional trade-offs between efficiency and equity and extends
the scope of welfare beyond direct cash transfers.
The context above provides the opportunity to assess how large-scale, gender-targeted subsidies
reshape transport systems, revenue structures, and spatial equity. This report seeks to provide an
evaluation of these dimensions by examining the scheme’s implementation, its fiscal
implications, and its effects on women’s ridership patterns and mobility outcomes across
Bengaluru.

2.​ Objectives

The central objective is to quantify the extent to which free bus travel has transformed patterns of
women’s mobility across Bengaluru. This includes assessing changes in ridership volume for
both men and women across different routes, through both temporal and spatial lenses.

In addition, we assess the fiscal dimensions of the scheme. This involves understanding the cost
implications for the Bangalore Metropolitan Transport Corporation (BMTC) by evaluating how
the scheme has affected revenue structures and subsidy distribution.
Together, these objectives guide the report’s dual focus of empirical evaluation and policy
reflection.

3.​ Data and Method

The analysis in this report is grounded in a comprehensive and robust use of administrative data
from BMTC, complemented by contextual and qualitative insights from specific case studies and
secondary sources.

3.1 Data Sources

The primary dataset comprises 2.89 crore trip-level records obtained directly from BMTC’s
ticketing and depot-level reporting systems. These records cover the period January 2023 to
January 2025, allowing for a comparative analysis of pre- and post-implementation phases. Each
trip record captures route information, ticket revenue, passenger count, and fare classification
(paid versus Shakti).

This granular data enables disaggregation by route, date, and allows us to identify patterns of:

A.​ Ridership changes over time, across Bengaluru;

B.​ Revenue shifts linked to the substitution of paid tickets with Shakti subsidy; and
C.​ The route-level, spatial distribution of the ridership trends across the city.

3.2 Methodology

The study employs a three-part design to evaluate the scheme’s impacts:

Descriptive Analysis –
Baseline and trend comparisons were made between the six months preceding the scheme’s
introduction (January–June 2023) and the eighteen months following it (July 2023–December
2024). This allowed the identification of major shifts in ridership patterns, revenue composition,
and gender balance in public transport usage.

Case Studies –
Two specific case studies that assess whether (1) the scheme’s take-up is equitable across areas
that differ by caste composition of its residents, and (2) the complementarity of bus and metro
systems within the transport network of the city.

Mobility and Labour Linkages –

We examine the association between women’s ridership gains and labour market access,
specifically with respect to accessing Bengaluru’s Central Business District (CBD). By mapping
route-level data within the city space, our study identifies enhanced mobility has corresponded to
women accessing zones where labour market opportunities are higher.

Our approach combines the strengths of large-scale administrative data with contextual
interpretation, ensuring that policy reflections are rooted both in statistical evidence and
operational constraints.

4. Key Findings and Policy Reflections

The findings of the study highlight both the transformative and the contested aspects of the
Shakti scheme’s first 18 months.

A.​ Transformational impact on women’s mobility: Women now outnumber men on many
key routes, especially in Bengaluru’s Central Business District (CBD), signalling a
structural shift in urban mobility and access to opportunities.
B.​ Fiscal sustainability and revenue balance: Preliminary evidence suggests that while
subsidies slightly exceed fare revenue, the difference is relatively narrow, and the system
shows signs of balance between Shakti and non-Shakti riders. However, the long-term
fiscal sustainability of the scheme remains uncertain, given possible crowding, uneven
subsidy-to-revenue ratios across routes, and the need for ongoing government support.
C.​ Spatial and social equity effects: Ridership gains are concentrated in northern, western,
and central Bengaluru, with weaker uptake in the eastern peripheries due to weaker
BMTC coverage and migrant women’s exclusion. Case studies show strong benefits for
industrial-residential hubs (e.g., Jalahalli, Peenya), and no significant disparities in usage
between wards with high and low SC/ST populations.
D.​ Labour market and welfare linkages: The scheme plausibly expands women’s effective
access to jobs, education, and health care by removing transport costs. Some studies
suggest an improvement in female labour force participation and changes in time use,
though direct causal evidence from Bengaluru remains limited. At the very least, the
scheme appears to ease a key constraint on women’s mobility that has historically shaped
their economic and social opportunities.
E.​ Policy imperatives for the future: The report stresses three priorities: (i) expanding
BMTC capacity (fleet size, frequency, integration with metro) to absorb demand; (ii)
improving last-mile connectivity to ensure genuine universality; and (iii) extending
benefits to migrant women, who remain excluded despite being among the city’s most
mobility-constrained groups.
Fare-free Public Transit and Women’s Economic Participation – II – A
JJN Report on Karnataka’s Shakti Scheme

Executive Summary
Context and Purpose

The Shakti Yojane represents one of Karnataka’s most significant social policy innovations in
advancing women’s mobility, economic participation, and autonomy through fare-free
public transport. Against the backdrop of persistent gender gaps in employment and access to
safe, affordable mobility, this study assesses how the scheme is reshaping the lives and choices
of women who depend on public transport for work, caregiving, and daily life. By integrating
quantitative and qualitative evidence, the study provides actionable insights into the scheme’s
social and economic effects and identifies ways to sustain and strengthen its outcomes.

Methodology and Representativeness

This Phase 2 study adopts a mixed-methods research design, integrating cross-sectional,

longitudinal, and qualitative components to build a comprehensive understanding of Shakti
Yojane’s reach and impact.

• The cross-sectional survey of 1,000 respondents across 50 BMTC-serviced bus stops

in Bengaluru Urban captures the experiences of active bus users—the scheme’s primary
target group.

• The longitudinal follow-up of respondents from Phase 1 enables tracking changes in

mobility, employment, and perceptions over time.

• In-depth interviews in four tier-2 and tier-3 urban centres in four districts—Bagalkote,
Raichur, Shivamogga, and Hassan—extend insights beyond the metropolitan context.

Together, these components yield a representative portrait of working-age women dependent

on public transport. While final-stage sampling was non-probabilistic, the focus on active bus
users ensures strong practical relevance for assessing Shakti’s effectiveness among its intended
beneficiaries.

Profile of Shakti Users

The study reflects largely a working-age, lower- to lower-middle-income, majority female

commuter base, with a significant proportion belonging to OBC and SC–ST groups,
underscoring the scheme’s reach among economically and socially disadvantaged households.

Educational attainment among Shakti-eligible women is broadly consistent with state

averages, though lower than men’s- highlighting enduring gender disparities in educational
access and, by extension, occupational outcomes. Importantly, the study also finds that nearly
one in five Shakti beneficiaries has little or no formal education, indicating that the scheme
effectively reaches women at the lower end of the educational and income spectrum- those
least likely to own private transport or have independent mobility options. For this group,
Shakti directly mitigates barriers arising from both economic and educational exclusion,
enabling more consistent access to work, markets, and services.
To the extent that the sample is representative of bus users in Karnataka, these findings
suggest that Shakti plays a particularly critical role for women from more vulnerable
households, for whom the cost and accessibility of transport are decisive factors shaping their
economic participation and daily [Link] study reflects largely a working-age, lower- to
lower-middle-income, majority female commuter base, with a significant proportion
belonging to OBC and SC-ST groups, underscoring the scheme’s reach among economically
and socially disadvantaged households.

Mobility, Safety, and Social Norms

The study finds that women’s mobility remains mediated by informal curfews and household
norms, particularly among younger and married women. Yet, Shakti is helping transform these
patterns by making women’s travel visible, affordable, and socially legitimate. Women
reported using buses more frequently and for multiple purposes- work, errands, and leisure-
reflecting expanded spatial and social mobility.

Qualitative insights reveal enhanced confidence and safety perceptions: women describe
feeling more secure traveling alone or after dark, and more independent in managing daily
responsibilities. These shifts signify a gradual normalisation of women’s presence in public
spaces, which holds wider implications for gender equity and social inclusion.
Economic and Employment Effects

The study shows that Shakti has had a stabilising and enabling effect on women’s
employment. While it has not substantially increased new labour-force entry, it has allowed
women already engaged in work to take on additional shifts or secondary jobs, thereby
enhancing income security and improving overall work participation. Respondents frequently
linked this to reduced commute costs and greater flexibility in travel, which together imply
positive effects on job retention and reduced absenteeism among working women.

Women - especially Shakti beneficiaries- are concentrated in low-wage, regular salaried work
in sectors such as domestic services, petty retail, and small-scale manufacturing, often
without social protection. Although 66% of respondents report regular employment, job quality
remains precarious. Average monthly earnings among Shakti-eligible women (₹17,357) and
ineligible women (₹18,857) lag behind men’s (₹22,430), reflecting both occupational
segregation and limited upward mobility.

By removing daily transport costs, Shakti enables women to save ₹1,500–₹2,000 per month,
contributing to household welfare and financial resilience. Longitudinal data show increased
earnings and sustained participation in work, while qualitative accounts highlight how savings
are redirected toward children’s education, health, and small-scale livelihood investments.

Household Welfare and Scheme Convergence

Nearly all domiciled households (96%) accessed at least one major welfare programme, with
Shakti Yojane achieving the widest reach (94%), followed by Gruhalakshmi, Anna Bhagya,
and Gruha Jyothi. Over half of the surveyed households benefited from all four schemes,
demonstrating strong policy convergence among lower- and lower-middle-income urban
families.

For Shakti beneficiaries, this overlap underscores the scheme’s position within Karnataka’s
broader social protection framework. By reducing mobility costs and facilitating access to
work, markets, and essential services, Shakti complements income and consumption
supports—serving as a mobility-based enabler of economic participation and household
stability.

Challenges Identified

While Shakti enjoys wide public acceptance and strong uptake, operational challenges remain:
 • Overcrowding and wait times on high-demand routes, especially during peak hours.

• Safety and comfort issues for elderly women, pregnant commuters, and those
traveling with dependents.

• Perceived inequities among non-beneficiaries, underscoring the need for transparent

communication on scheme rationale and objectives.

• Another major challenge reported was the recent increase in bus fares faced by
non-beneficiaries. There is a widespread perception-reflected both among sample
respondents and in media reports-that these hikes are linked to the introduction of the
Shakti scheme, though no official policy document or state communication supports
such a connection. Some male respondents also cited this perception as a reason for
discontinuing bus use.

Addressing these concerns through improved service delivery and proactive communication
will be key to sustaining the scheme’s momentum and ensuring continued public confidence.

Policy Recommendations

1. Ensure Affordable and Equitable Fares for All Users

To address affordability concerns among non-beneficiaries, consider calibrated fare

structures or fare caps that sustain inclusion while maintaining fiscal responsibility.
Transparent communication on subsidies will reinforce public confidence.

2. Promote Gender-Sensitive Transport Systems

Institutionalize gender-sensitivity and commuter service training for transport staff;

establish district-level grievance redressal mechanisms; and undertake awareness
campaigns to normalise women’s mobility and highlight the scheme’s broader benefits.

3. Expand Scheme Coverage and Inclusion

 Extend eligibility to include non-domiciled working women, students, and persons
with disabilities, given their comparable reliance on public transport. Expanding reach
would further enhance equity, social mobility, and productivity, particularly among
women in the informal and low-wage workforce.

4. Foster Cross-Departmental Collaboration for Greater Impact

Encourage cooperation between intra state bodies such as Transport, Labour, and
Women & Child Development departments to link Shakti with employment, skilling,
and childcare initiatives, amplifying its long-term developmental and gender-equity
impacts.

Shakti Yojane exemplifies Karnataka’s commitment to gender-responsive and inclusive

public policy. The scheme demonstrates that accessible mobility can serve as both a welfare
instrument and a driver of economic empowerment - enhancing women’s visibility,
independence, and participation in public life. Continued focus on service quality, coordination,
and gender-sensitive governance will consolidate Shakti’s position as a flagship model of
equitable, sustainable mobility and a benchmark for gender-focused policy innovation
nationwide.