Financial Strain Looms Over Maharashtra Due to Ladki Bahin Scheme, Warns CAG Report

A recent report by the Comptroller and Auditor General (CAG) has raised significant concerns regarding the financial sustainability of Maharashtra due to the state government’s ambitious Mukhyamantri Majhi Ladki Bahin Yojana. Launched in June 2024, this scheme aims to empower women aged between 21 and 65 by providing them with a monthly financial assistance of Rs 1,500, targeted at families earning less than Rs 2.5 lakh annually.

The Ladki Bahin scheme played a pivotal role in the electoral success of the Bharatiya Janata Party-led Mahayuti alliance, which secured 230 seats out of 288 in the Maharashtra Assembly elections held in November 2024. However, the CAG’s report, presented in the state legislature on Friday, cautioned that the escalating costs associated with this welfare program may induce a financial strain on the state’s budget.

According to the findings, the financial allocation for women’s welfare has surged dramatically, rising from a mere Rs 261.7 crore in 2023-24 to a staggering Rs 33,554.3 crore for the fiscal year 2024-25. The report suggests that this substantial increase in spending represents a notable shift towards revenue expenditure and cash-transfer initiatives, while capital expenditure accounted for just about 14% of the total outlay.

Moreover, the audit highlighted the concerning trend of Maharashtra’s increasing reliance on off-budget borrowing. These loans, which are procured by state agencies through government entities rather than directly through the state budget, have raised alarms among financial analysts. The report revealed pressing figures: Maharashtra is grappling with a revenue deficit of Rs 29,994 crore and a fiscal deficit that has ballooned to Rs 1.2 lakh crore, alongside outstanding liabilities amounting to Rs 8.6 lakh crore.

The implications of these financial strains could be far-reaching, potentially affecting the state’s ability to fund essential services and infrastructure projects in the future. As the government champions the Ladki Bahin scheme as a flagship initiative for women’s empowerment, the CAG’s warnings underscore the delicate balance between social welfare and fiscal responsibility. Stakeholders must now consider sustainable solutions that can support these noble objectives without jeopardizing the state’s financial health.

Source: scroll.in