The Comptroller and Auditor General (CAG) has expressed serious concerns regarding the financial management of the Maharashtra government’s Mukhyamantri Ladki Bahin Yojana for the state. According to the audit report, irregularities detected in the audit period involve an excess of ₹3,541 crore and fund parking of ₹15,586 crore in Virtual Personal Deposit Accounts (VPDAs). These support weak budgetary discipline and missing controls on expenditure under the government’s flagship women’s welfare scheme.

Excess expenditure and fund parking in VPDAs

The CAG’s State Finances Audit Report for the fiscal year 2024-25 showed that ₹33,237.24 crore was spent by the state government’s Women and Child Development Department on its Ladki Bahin Yojana, while the budget approved for the department for the year was ₹29,693.09 crore. This led to excess spending of ₹3541.16 crore. 

The department did not provide a clear explanation for this overspending, raising questions about transparency and accountability in the scheme’s financial management. Excessive spending, however, degrades legislative authority and is inconsistent with fiscal principles, the audit emphasized.

From January to March 2025, cash transfer to VPDAs was envisaged, and various payments totaling ₹15,586 crore were withdrawn from the treasury but not immediately spent. The CAG termed this data inconsistent with the financial discipline where the treasury can be withdrawn only in accordance with the requirements. 

Parking revenues in a VPDA avoids legislative monitoring and influences financial reporting. The audit highlighted that these practices reduce transparency and accountability in public finance management.

The audit identified several organizational inadequacies in the scheme’s financial planning and execution. Budget estimates proved too optimistic, resulting in much higher additional demands and unplanned spending. Financial discipline violation flagged for the use of fund parking in VPDAs with no immediate requirements. 

The CAG suggested that departments following the DBT programmes should carry out base calculations in various DBT numbers and the requirement of funds to prevent irregularities and overspending. The report highlighted the need for better coordination between treasury withdrawals and the final spending requirements to ensure fiscal prudence.

Objectives and impact of the Ladki Bahin Yojana

The decision to launch the Mukhyamantri Majhi Ladki Bahin Yojana was made on 28 June 2024, with an aim to help women by providing direct financial assistance. Under the scheme, women in the age range of 21 to 65 years will get DBT benefit of ₹1,500 per month.

The purpose behind the launch of this scheme was to provide financial independence to women and improve their standards of living in the state of Maharashtra. The launch of the scheme coincided with a spiral in welfare expenditure, which showed a jump from ₹261.78 crore in the previous year to more than ₹33,500 crore for the welfare of women.

The Ladki Bahin Yojana is a significant shift in the paradigm of welfare in Maharashtra and transitions from the creation of assets and widespread direct benefit transfers. An audit conducted under the scheme indicates concerns regarding sustainability and fiscal prudence, despite the fact that it has made significant contributions to lakhs of women. 

The CAG pointed out that excess spending and parking funds are irregular practices that compromise public trust in welfare programs and reduce the effectiveness of legislative oversight. The report recommended improved financial surveillance and tighter controls on welfare budgets to make these more effective and sustainable.

Conclusion

The audit of the Ladki Bahin Yojana by the CAG emphasizes that financial wisdom, accountability, and management of expenses are important in welfare schemes initiated by the Government of Maharashtra. The scheme has provided financial assistance to many women in the state, but the flaws found in the process, such as spending of about ₹3,541 crore extra and about ₹15,586 crore funds being stuck, indicate a lack of financial discipline in the scheme. The government needs to step up its efforts regarding monitoring and fund management. Financial honesty is important in the success of the Ladki Bahin Yojana.