How Maharashtra’s Ladki Bahin Scheme Exceeded Its Budget by Rs 3,541 Crore Without Justification

The Comptroller and Auditor General (CAG) has noted that around Rs 3,541.16 crore in excess expenditure was spent on Maharashtra’s Mukhyamantri Majhi Ladki Bahin Yojana in the 2024–25 fiscal year. The report claimed that the state government failed to provide any specific justification for the excessively sanctioned budget. According to reports, spending on the Ladki Bahin scheme caused the state’s women’s welfare budget to jump to Rs 33,554.3 crore in 2024–25, up from just Rs 261.7 crore in 2023–24.

According to the report, the Mukhyamantri Majhi Ladki Bahin Yojana received a supplementary grant of Rs 26,200 crore, while another Rs 3,493.09 crore was re-appropriated from the Lek Ladki Yojana, bringing the total allocated grant to Rs 29,693.09 crore. However, the Women and Child Development Department incurred an actual expenditure of Rs 33,234.25 crore, resulting in an excess expenditure of Rs 3,541.16 crore. The CAG stated that the department did not provide a valid justification for this overspending. The auditor also questioned the manner in which the funds were utilized under the scheme.

CAG Points Out Financial Deficiencies in Ladki Bahin Scheme

The report raised serious concerns over the government’s flagship scheme, claiming that the unexplained excess expenditure and the parking of funds in deposit accounts have undermined the principles of budgetary discipline. The audit also flagged the state’s heavy dependence on off-budget borrowings which are loans taken by state agencies through government-owned entities instead of directly by the government itself.

What is the Mukhyamantri Majhi Ladki Bahin Yojana?

Maharashtra’s Ladki Bahin scheme was launched in June 2024. Under the scheme, a monthly transfer of Rs  1,500 is provided via Direct Benefit Transfer (DBT) to women aged 21 to 65 whose families earn less than Rs  2.5 lakh per year. During the 2024 assembly elections, the scheme played a crucial role in helping the Bharatiya Janata Party-led Mahayuti alliance win a majority of seats. However, the scheme has sparked intense controversy due to its massive budget expansion. State leaders have acknowledged that the scheme has put a severe financial strain on various government departments. Furthermore, the Women and Child Development Department reported critical deficiencies in implementation, revealing that around 14,298 men had enrolled in the scheme by misrepresenting their identities, causing a loss of Rs  21.4 crore to the state exchequer.

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