Maharashtra’s Ladki Bahin scheme could put a strain on state’s finances, says CAG report

A report by the Comptroller and Auditor General has warned that Maharashtra’s finances could come under strain because of its spending on the Mukhyamantri Majhi Ladki Bahin Yojana, the Hindustan Times reported on Sunday.

The scheme, launched in June 2024, provides a monthly transfer of Rs 1,500 to women aged 21 to 65 whose families earn less than Rs 2.5 lakh per year.

The Ladki Bahin scheme is said to have played an important role in the Bharatiya Janata Party-led Mahayuti alliance winning 230 seats in the 288-member Assembly in November 2024.

The report, tabled in the state legislature on Friday, said that spending on the Ladki Bahin scheme has led to the women’s welfare budget to jump to Rs 33,554.3 crore in 2024-’25 from Rs 261.7 crore in 2023-’24.

“The spending in the social sector expanded significantly while capital expenditure accounted for only about 14% of total expenditure, indicating a shift towards revenue expenditure and cash-transfer schemes,” the newspaper quoted the report as saying.

The audit also flagged the state’s dependence on off-budget borrowing which are loans taken by state agencies through government-owned entities instead of directly by the government.

It said that Maharashtra recorded a revenue deficit of Rs 29,994 crore, a fiscal deficit of Rs 1.2 lakh crore, and outstanding liabilities of Rs 8.6 lakh crore in...

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