A Study On Examining The Effectiveness Of State Government Freebies On Encouraging Savings And Investment Behaviour In Karnataka

Abstract

This study aims to determine the saving and investing propensities of state government handouts in Karnataka, India, create among its recipients. The paper explores how all these different handouts the state offers-collectively by way of Anna Bhagya, Gruha Lakshmi, Gruha Jyothi, Shakti, and Yuvanidhi-create savings patterns and choices among the recipients. It examines the extent to which these gifts influence saving and investment motivation among the receivers, with special focus on issues of incentive values, access, and financial knowledge.  A cross-section of various benefits accrues from each one of these schemes, including free electricity, women empowerment in terms of monetary aid, reduced prices of food grains, and job incentives for the youth. The aim of the study is to understand how the financial aid provided through these initiatives directly and indirectly impacts the lives of those recipients. One of the significant parts of this research is going to be finding out about how the perceived value of these incentives impacts the financial practice of the beneficiary. For instance, higher or more frequent rewards encourage saving, while smaller, one-time benefits might make people behave differently concerning money. The recipients have the knowledge to make smart decisions concerning saving and investing, weaknesses in financial literacy limit the potential of benefits of such government efforts. This study would be gauged on what aspects of these state programs help in fostering long-term financial security, and how the government could make the best use of these efforts for a saves and investing culture.