CAG Flags 'Deficiencies' In Maharashtra's Ladki Bahin Scheme, Questions Rs 3,541 Crore Excess Spending

Last Updated:July 11, 2026, 12:47 IST

Spending on women welfare increased from Rs 261.78 crore in 2023-24 to Rs 33,554.36 crore in 2024-25, due to the implementation of the Mukhyamantri Majhi Ladki Bahin Yojana.

The Comptroller and Auditor General (CAG) has raised concerns over the financial management of Maharashtra’s Mukhyamantri Majhi Ladki Bahin Yojana, stating that its implementation during 2024-25 was marked by “significant deficiencies in budget estimation, expenditure control and financial management".

In its State Finances Audit Report for the financial year 2024-25, the CAG found that the state’s Women and Child Development Department incurred excess expenditure of Rs 3,541.16 crore under the scheme without providing “any specific justification".

The audit has recommended that the government make a more realistic assessment of beneficiary coverage and funding requirements while preparing budgets for large Direct Benefit Transfer (DBT) schemes.

CAG flags parking of Rs 15,586 crore

The audit also highlighted that Rs 15,586 crore, withdrawn during January-March 2025, was transferred to Virtual Personal Deposit Accounts (VPDA) during the last quarter of the financial year.

According to the report, these government-managed deposit accounts were used to hold funds before disbursal despite there being no immediate requirement to utilise the money.

The CAG said this reflected “parking of funds" and withdrawal of money without corresponding expenditure needs. The report added that such practices “undermine the principles of budgetary discipline, financial propriety and legislative control over public finances".

It further observed that the unexplained excess expenditure and parking of funds in VPDA accounts reflected weak budget estimation and inadequate financial controls.

Rise in women welfare spending

The audit also noted a significant shift in Maharashtra’s social sector expenditure during the financial year.

Spending on women welfare increased from Rs 261.78 crore in 2023-24 to Rs 33,554.36 crore in 2024-25, largely due to the implementation of the Mukhyamantri Majhi Ladki Bahin Yojana.

According to the report, this reflected “a major push toward welfare-oriented transfers rather than capital formation".

At the same time, expenditure on housing declined by 54.69 per cent, while spending on water supply and sanitation fell by 31.81 per cent compared with the previous financial year.

The CAG said this indicated “a contraction in infrastructure-related investments within the social sector", which “could adversely affect the sustainability of service delivery".

Ladki Bahin scheme

The Mukhyamantri Majhi Ladki Bahin Yojana was launched on June 28, 2024, ahead of the Maharashtra Assembly elections by the Mahayuti government comprising the BJP, the Shiv Sena led by then Chief Minister Eknath Shinde, and the NCP led by then Deputy Chief Minister Ajit Pawar.

Under the scheme, eligible women aged between 21 and 65 years with an annual family income below Rs 2.5 lakh receive Rs 1,500 every month through Direct Benefit Transfer. The scheme is implemented by the Women and Child Development Department.

Grant exceeded by over Rs 3,500 crore

According to the report, the state allocated Rs 26,200 crore for the scheme through supplementary demands during 2024-25. It also re-appropriated Rs 3,490.75 crore from the Lek Ladki Yojana, taking the total grant available for the scheme to Rs 29,693.09 crore.

Against this allocation, the Women and Child Development Department incurred expenditure of Rs 33,237.24 crore, resulting in excess spending of Rs 3,541.16 crore.

The CAG noted that the department “did not provide any specific justification" for the excess expenditure.

It recommended a “realistic assessment of beneficiary coverage and fund requirements while formulating budget estimates for large DBT schemes" to avoid excess expenditure and repeated supplementary demands in the future.

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