Ladki Bahin scheme pushed women’s welfare budget to Rs 33,554 crore from Rs 261 crore in a year: CAG

New Delhi, India Jul 12, 2026 ALN: A report by the Comptroller and Auditor General (CAG) has raised alarms regarding the financial sustainability of Maharashtra's budget, particularly due to the substantial expenditures associated with the Mukhyamantri Majhi Ladki Bahin Yojana, commonly referred to as the Ladki Bahin scheme. This scheme, which was launched in June 2024, is designed to provide financial assistance to women aged between 21 and 65 years from families with an annual income below Rs 2.5 lakh. The initiative aims to empower women economically and socially, reflecting the broader objectives of the government to enhance women's welfare and promote gender equality.

The CAG's report, which was presented in the state legislature, indicated a staggering increase in the women’s welfare budget, soaring from Rs 261.7 crore in the fiscal year 2023-’24 to Rs 33,554.3 crore in 2024-’25. This represents an approximate increase of 12,700%, a figure that highlights the dramatic financial commitment the state has made towards this scheme. Such a leap in funding for women's welfare is unprecedented and has raised questions about the long-term implications of such fiscal policies.

The Ladki Bahin scheme is credited with playing a pivotal role in the electoral success of the Bharatiya Janata Party (BJP)-led Mahayuti alliance, which secured 230 seats in the 288-member Maharashtra Assembly during the elections in November 2024. The timing of the scheme's launch, shortly before the elections, has led to speculation that it was strategically designed to bolster the party's support among women voters, a demographic that has historically been significant in electoral outcomes.

However, the CAG report has pointed out that the surge in social sector spending, particularly on cash-transfer schemes like the Ladki Bahin scheme, may be detrimental to the state’s financial health. The report noted that capital expenditure accounted for only about 14% of the total expenditure, indicating a concerning shift towards revenue expenditure. This trend points to a reliance on cash transfers rather than investments in infrastructure or long-term development projects, which could yield sustainable economic growth.

Furthermore, the audit highlighted Maharashtra's increasing dependency on off-budget borrowing, which refers to loans acquired by state agencies through government-owned entities instead of direct borrowing by the state government. This practice raises concerns about transparency and accountability, as it obscures the true financial obligations of the state and could lead to greater fiscal instability in the long run.

The fiscal situation in Maharashtra appears to be precarious, with the report detailing a revenue deficit of Rs 29,994 crore, a fiscal deficit of Rs 1.2 lakh crore, and outstanding liabilities totaling Rs 8.6 lakh crore for the fiscal year 2024-’25. While the state's Gross State Domestic Product (GSDP) growth has been robust, the increasing revenue deficit necessitates a greater reliance on market borrowing to finance capital expenditures, which poses risks to long-term debt sustainability.

The Ladki Bahin scheme has not been without controversy. The financial strain it has placed on state resources has led to criticisms from various quarters, including opposition leaders and even members within the ruling coalition. In October, Chhagan Bhujbal, a leader from the Nationalist Congress Party (NCP) and a state minister, disclosed that all government departments were experiencing a funding crisis attributed to the scheme. This acknowledgment of financial strain indicates a growing concern among policymakers regarding the sustainability of such large-scale cash transfer programs.

Despite the mounting criticisms, state officials have maintained that the Ladki Bahin scheme will not be discontinued. In February, state minister Ganesh Naik confirmed that while the scheme had indeed strained government finances, it would continue to operate. The government allocates approximately Rs 3,700 crore monthly to disburse benefits to around 2.4 crore beneficiaries under the scheme, which underscores its scale and the financial commitment involved.

However, the implementation of the scheme has faced scrutiny, particularly concerning the eligibility of beneficiaries. A review conducted in July 2025 revealed that over 14,000 men in Maharashtra had fraudulently enrolled in the scheme, misrepresenting their identities to receive payouts. This misuse resulted in a loss of Rs 21.4 crore to the state exchequer, prompting the Women and Child Development Department to halt payments to these accounts. Such incidents raise questions about the effectiveness of the verification processes in place and the potential for systemic fraud within government welfare programs.

In addition, a state-wide verification exercise conducted in June found approximately 80 lakh women ineligible for the scheme, leading to a significant reduction in the number of beneficiaries from around 2.4 crore to nearly 1.7 crore after the April 30 deadline for completing the e-KYC process. Opposition leaders have alleged that the government is intentionally reducing the number of beneficiaries due to financial constraints, further complicating the political landscape surrounding the scheme.

The Ladki Bahin scheme, while aimed at empowering women and providing financial support, has emerged as a focal point of debate regarding fiscal responsibility and governance in Maharashtra. As the state navigates the complexities of welfare economics, the implications of such large-scale cash transfer schemes will likely influence future policy decisions and electoral strategies. The ongoing scrutiny and evaluation of the scheme's effectiveness and financial sustainability will be critical as Maharashtra grapples with the dual challenges of promoting social welfare and maintaining fiscal health.

In conclusion, while the Ladki Bahin scheme represents a significant commitment to women's welfare in Maharashtra, the financial implications outlined by the CAG report necessitate careful consideration and strategic planning to ensure that such initiatives do not jeopardize the state's broader economic stability. As the political and financial landscape continues to evolve, the outcomes of this scheme will be closely monitored by stakeholders across the spectrum, from government officials to the electorate.