Bengal unemployment aid scheme

Why in news

The West Bengal government launched the 'Banglar Yuba Sathi' scheme, sparking a surge in registrations among unemployed youth seeking monthly allowances.

Background

The Banglar Yuba Sathi scheme provides a monthly payment of ₹1,500 to unemployed individuals in West Bengal. The state government has allocated a budget of ₹5,000 crore for the program's implementation.

Facts for Prelims

• SchemeBanglar Yuba Sathi: A West Bengal state government initiative providing monthly unemployment allowance.
• FactMonthly allowance amount: ₹1,500 per beneficiary.
• FactTotal state budget allocation for the scheme: ₹5,000 crore.

For Mains

Q. Evaluate the efficacy of direct cash transfer schemes in addressing structural unemployment versus providing temporary financial relief.

Dimensions to cover in your answer

• Fiscal sustainability: Long-term budgetary pressure of recurring monthly payments vs. one-time skill development investments
• Labor market distortion: Potential for 'dependency traps' where cash benefits may disincentivize active job seeking

Keywords: Direct Benefit Transfer · Structural Unemployment · Fiscal Sustainability · Social Safety Net · Labor Market Dynamics

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