The Shakti scheme for free bus travel for women in Karnataka has been shown, in a study by the state-run Fiscal Policy Institute (FPI), to boost the state's GST revenue and enhance female workforce participation. According to the study, since the launch of the Shakti scheme in June last year until March this year, Karnataka's GST collection likely saw a rise of Rs 309.64 crore.
This increase is attributed to women utilizing their saved money for consumption, thereby generating revenue for the government. The study is the first to quantify the financial impact of Shakti, the flagship guarantee scheme of the Siddaramaiah-led Congress government.