Maharashtra: CAG Flags Rs 3,541-Crore Excess Spending In Maharashtra’s ‘Ladki Bahin Scheme’

The Report of the CAG on State Finance for 2024-25 was tabled in the State Legislative Assembly on Friday by Cabinet Minister Ashish Shelar on behalf of Chief Minister Devendra Fadnavis.

According to the audit, the Women and Child Development (WCD) Department was allotted Rs 29,693.09 crore for the scheme in 2024-25 but spent Rs 33,237.24 crore, exceeding the sanctioned allocation by Rs 3,541.16 crore. The CAG noted that the department did not furnish any specific justification for the excess expenditure.

The audit scrutinised vouchers worth Rs 29,732.01 crore and found that Rs 15,586 crore withdrawn during the last quarter of the financial year (January-March 2025) was transferred to the Drawing and Disbursing Officer’s Virtual Personal Deposit Account instead of being utilised immediately.

According to the CAG, this indicated that funds had been drawn without commensurate expenditure requirements and parked in deposit accounts, contrary to the principles of budgetary discipline, financial propriety and legislative control over public finances.

“For implementation of the MMLBY, funds amounting to Rs 26,200 crore were made available through the supplementary budget. Additionally, Rs 3,490.75 crore was re-appropriated for the scheme. Thus, a total grant of Rs 29,693.09 crore was made available. Against this, the WCD incurred an expenditure of Rs 33,237.24 crore, resulting in excess expenditure of Rs 3,541.16 crore, for which the department did not provide any specific justification,” the report said.

It further stated that the transfer of Rs 15,586 crore to the VPDA showed that “the funds were not required for immediate utilisation and were drawn without actual expenditure needs, contrary to principles of budgetary discipline and financial propriety.”

The MMLBY was launched on June 28, 2024, by the then Eknath Shinde-led Mahayuti government after the alliance's setback in the Lok Sabha elections. The scheme provides financial assistance of Rs 1,500 per month through Direct Benefit Transfer (DBT) to eligible married, divorced and destitute women aged 21 to 65 years. It is widely credited with contributing to the BJP-led Mahayuti's emphatic victory in the November 2024 Assembly elections, although its fiscal burden has remained a concern for the state administration and finance department.

According to the CAG, the scheme aims to promote women’s economic independence, improve their health and nutrition, and strengthen their role in household decision-making. However, the audit found significant deficiencies in budget estimation, expenditure control and financial management, observing that the unexplained excess expenditure and parking of funds reflected weak budget planning and inadequate financial controls.