Maharashtra: CAG flags Rs 3,541 crore excess spending on Ladki Bahin

Already under fire over the controversial Rs 7,000-crore 'missing link' infrastructure project — a portion of which suffered damage during the first rains of the season — the Devendra Fadnavis-led Maharashtra government has now come under scrutiny from the Comptroller and Auditor-General (CAG) over financial management of its flagship Mukhyamantri Majhi Ladki Bahin Yojana.

In its State Finances Audit Report for 2024-25, tabled in the Maharashtra legislature on Friday, 10 July, the CAG flagged excess expenditure of Rs 3,541.16 crore under the direct cash transfer scheme, stating that spending exceeded the budgetary allocation approved for the programme.

According to the report, the women and child development department incurred expenditure of Rs 33,237.24 crore on the scheme against an authorised budget of Rs 29,693.09 crore, resulting in an excess outgo of Rs 3,541.16 crore.

The audit report noted that the department failed to provide any specific justification for the substantial overspending. 'The Women and Child Development Department did not furnish any specific reasons for the excess expenditure,' the CAG observed.

The Ladki Bahin scheme, under which eligible women receive direct financial assistance from the state government, was one of the BJP-led Mahayuti alliance's flagship welfare initiatives and is widely credited with contributing to its emphatic victory in the 2024 Maharashtra Assembly elections.

The CAG report said a total grant of Rs 29,693.09 crore was made available for the scheme, including Rs 26,200 crore through supplementary provisions and Rs 3,490.75 crore reappropriated from the Lek Ladki Yojana.

The audit also raised concerns over the handling of scheme funds. It found that Rs 15,586 crore withdrawn between January and March 2025 was transferred to virtual personal deposit accounts (VPDAs).

'This large-scale withdrawal indicates that the funds were not required for immediate use and were drawn from the treasury without actual expenditure needs,' the report said, flagging concerns over adherence to financial norms.

The audit observations come amid questions over the implementation of the scheme itself. A recent state-wide verification exercise led to the removal of more than 92 lakh beneficiaries, as per an Indian Express report, significantly higher than the nearly 80 lakh deletions publicly acknowledged by the government.

"Around Rs 14,000 crore of the state government's money has been spent under (the scheme). Whose money is this? It is the money of hardworking taxpayers, who pay taxes with the expectation that benefits will reach rightful beneficiaries," Shiv Sena (UBT) leader Priyanka Chaturvedi said.

Of those removed, nearly 62 lakh beneficiaries reportedly failed to complete mandatory e-KYC requirements. Others were found ineligible for reasons including exceeding the prescribed income ceiling, being government employees, receiving benefits under other welfare schemes, or crossing the age limit. In nearly 29,000 cases, the beneficiaries were found to be men.

Reacting to the CAG findings, Congress general-secretary Randeep Singh Surjewala described the report as a "masterclass in fiscal bungling" and said the excess expenditure of Rs 3,541 crore without any specific justification was a serious indictment of the state government.

"Spending Rs 3,541 crore beyond the sanctioned allocation without providing any specific justification is an indictment of the government and reflects a complete failure of financial governance and accountability," Surjewala said.