CAG Finds ₹3,541 Crore Excess Spend in Maharashtra's Ladki Bahin Scheme

The Comptroller and Auditor General (CAG) has flagged significant financial irregularities in the implementation of the Maharashtra government's flagship Ladki Bahin scheme. In its State Finances Audit Report for 2024-25, tabled in the state legislature, the CAG noted an excess expenditure of ₹3,541.16 crore, parking of funds in deposit accounts, and deficiencies in financial management.

According to the report, the Women and Child Development Department spent ₹33,237.24 crore on the scheme against the authorised budget of ₹29,693.09 crore. The department did not provide any specific justification for this substantial overspend. The budget included ₹26,200 crore through supplementary provisions and ₹3,490.75 crore re-appropriated from the Lek Ladki Yojana.

The CAG further highlighted that ₹15,586 crore drawn between January and March 2025 was transferred to Virtual Personal Deposit Accounts (VPDAs). The auditor described this as a serious financial irregularity, stating that funds were withdrawn without immediate expenditure needs, undermining legislative control over public finances. The report emphasised that such practices are contrary to principles of budgetary discipline and financial propriety.

The audit also observed significant deficiencies in budget estimation, expenditure control, and financial management. It noted a sharp increase in expenditure on women's welfare from ₹261.78 crore in the previous year to over ₹33,500 crore, reflecting a shift toward welfare-oriented transfers rather than capital asset formation.

The Mukhyamantri Majhi Ladki Bahin Yojana, approved on June 28, 2024, aims to ensure women's economic independence by providing eligible women aged 21 to 65 years with ₹1,500 per month through Direct Benefit Transfer (DBT).

The CAG recommended that for large DBT schemes, the department should ensure realistic assessment of beneficiary coverage and fund requirements during budget formulation to avoid unnecessary supplementary demands or unauthorised excess expenditure. It also advised against parking funds in VPDAs, stating that fund withdrawals should be strictly linked to actual and immediate expenditure needs.