New Delhi, May 5 -- State-led cash transfers are set to provide a durable cushion to low-income household consumption in 2026, even as inflation risks from high energy prices and El Nino persist, according to a research report by Crisil Ratings.

The report notes that the coverage and scale of these transfers have expanded sharply, but the rising fiscal burden on states poses a key risk for the bond market going forward.

The report said that 17 out of 28 states and the National Capital Region-Delhi will provide monthly cash transfers this fiscal, compared to just four states in 2019. Targeted largely at women and farmers in rural and urban areas, the schemes require only income or landholding as eligibility and have become a recurring po...