According to a report by CRISIL, India's expanding cash transfer programs are becoming a vital support system for low-income households, especially during times of persistent inflation. As of fiscal 2026, 17 states and the National Capital Territory of Delhi have implemented these programs, a significant increase from just four states in 2019. The monthly cash transfers, aimed primarily at women and farmers, typically range from ₹1,000 to ₹2,500, with a median transfer of ₹1,500. This amount can cover 74% of the monthly expenditure for the bottom 20% of rural households and 51% for the urban poor. While these transfers can enhance consumption and support savings, CRISIL warns that rising state borrowing costs could undermine their long-term viability. States' gross market borrowings are projected to reach ₹12.4 trillion in fiscal 2026, a 15.2% increase from the previous year. The report emphasizes that while cash transfers provide immediate relief, improving income growth is essential for sustainable domestic demand.