CAG reports overspending of ₹3,541 crore, ₹15,586 crore on parking fund in Maharashtra’s Ladki Bahin Yojana | Today’s news
The Comptroller and Auditor General (CAG) has raised serious concerns over financial management in Maharashtra’s flagship Mukhyamantri Majhi Ladki Bahin Yojana, pointing to overspending ₹3,541.16 crore, extensive parking of funds and deficiencies in budget allocation and planning, according to PTI message.
As detailed in the CAG report on State Financial Audit 2024-25, tabled in the Maharashtra state legislature, the women and child development department spent ₹33,237.24 crores for the scheme against the sanctioned allocation ₹29,693.09 million crowns. The ministry, the report explained, did not provide a specific explanation for the additional spending.
The audit also made clear the fact that ₹15,586 crore withdrawn between January and March 2025 were transferred to Virtual Personal Deposit Accounts (VPDAs) instead of being used immediately. The CAG he called the practice a breach of financial discipline and said funds should not be drawn from the treasury unless there was an immediate requirement for expenditure.
This withdrawal and parking of funds in VPDA without immediate requirements as per CAG indicates serious financial irregularity. It is also “contrary to the principles of budgetary discipline and financial prosperity”. Not only that, but it also undermines legislative control and authority over public finances.
What is Ladki Bahin Scheme?
The Ladki Bahin programme, approved on 28 June 2024, provides ₹1,500 per month through Direct Benefit Transfer (DBT) to eligible women aged 21 to 65 years. The initiative was launched with the stated goal of promoting economic independence and women’s empowerment.
The program represented a major shift in government spending on social security
The CAG observed that the scheme represented a major shift in state spending on social security. Expenditure on women’s social security has increased sharply since ₹261.78 crore in the previous year to more than ₹33,500 crore, reflecting a shift towards large-scale direct benefit transfers rather than asset creation.
Furthermore, the audit recommended that all departments responsible for implementing major DBT programs should make realistic, fact-based assessments of the number of beneficiaries and overall funding requirements when drawing up budgets. This, as with the audit, will also help to avoid excessive additional requests, unplanned and unauthorized expenses and expenses.
CAG points out gaps in funds and seeks stricter controls in Maharashtra scheme
The CAG also advised the Maharashtra government to ensure that cash collections are directly linked to genuine and immediate demands and warned that parking public money on deposit accounts weakens legislative control and supervision. Therefore, it is clear that the government should focus more carefully on its financial management and ensure transparency.
As the program continues to provide much-needed financial assistance to thousands of women across Maharashtra, the audit findings highlight the need for stronger economic planning and transparency. fund management and tighter financial regulation and controls to ensure that welfare programs remain effective and fiscally sustainable.
