The comptroller and auditor general (CAG) has flagged serious financial irregularities in the implementation of the Maharashtra government's flagship Mukhyamantri Majhi Ladki Bahin Yojana, pointing to excess expenditure of ₹3,541.16 crore, poor budget estimation, weak financial controls and the parking of ₹15,586 crore in deposit accounts without any immediate expenditure requirement.
The findings are part of the
State Finances Audit Report 2024-25, tabled in the Maharashtra legislature on Friday. The audit said the women and child development department failed to justify the excess spending and adopted financial practices that undermined budgetary discipline and legislative control over public finances.
The Ladki Bahin scheme, approved on 28 June 2024, provides eligible women aged 21 to 65 years with ₹1,500 per month through direct benefit transfer (DBT) to promote women's economic independence, improve health and nutrition, and strengthen their role in family decision-making.
Budget Exceeded by Over ₹3,500 Crore
According to the CAG, the state initially provided ₹26,200 crore for the scheme through supplementary demands. Another ₹3,490.75 crore was re-appropriated from the Lek Ladki Yojana, taking the total available grant to ₹29,693.09 crore.
However, actual expenditure reached ₹33,237.24 crore, resulting in excess expenditure of ₹3,541.16 crore.
"The department incurred an expenditure of ₹33,237.24 crore, resulting in excess expenditure of ₹3,541.16 crore, for which the department did not provide any specific justification," the report said.
The audit concluded that the significant overspending remained unexplained despite exceeding the sanctioned grant.
₹15,586 Crore Parked in Deposit Accounts
The audit also questioned the manner in which funds were withdrawn during the last quarter of the financial year.
A test check of vouchers worth ₹29,732.01 crore found that ₹15,586 crore, drawn between January and March 2025, was transferred to the drawing and disbursing officer's virtual personal deposit account (VPDA).
According to CAG, this indicated that the money was not required for immediate utilisation.
"This indicates that the funds were not required for immediate utilisation and were drawn without actual expenditure needs, contrary to principles of budgetary discipline and financial propriety," the report observed.
The auditor said the practice amounted to parking public funds outside the treasury system without corresponding expenditure requirements, thereby weakening legislative oversight over government finances.
Weak Budget Estimation and Financial Controls
CAG said the implementation of the scheme was marked by significant deficiencies in budget estimation, expenditure control and financial management.
It observed that the unexplained excess expenditure and the parking of thousands of crores in VPDAs reflected weak budget estimation and inadequate financial controls.
"The implementation of the Mukhyamantri Majhi Ladki Bahin Yojana during FY24-25 was marked by significant deficiencies in budget estimation, expenditure control, and financial management," the report said.
It further noted that drawing ₹15,586 crore during the last quarter and transferring it to VPDA accounts "without immediate utilisation indicates parking of funds and drawal without commensurate expenditure requirements."
"Such practices undermine the principles of budgetary discipline, financial propriety, and legislative control over public finances," CAG added.
Women's Welfare Spending Surged
The audit also highlighted how the Ladki Bahin scheme dramatically altered Maharashtra's social sector spending pattern during FY24-25.
Revenue expenditure under social services rose to ₹2.26 lakh crore, driven primarily by spending on general education (₹83,879.64 crore) and social security and welfare (₹45,760.13 crore).
Within this, expenditure on women's welfare jumped from just ₹261.78 crore in FY23-24 to ₹33,554.36 crore in FY24-25, largely because of the Ladki Bahin scheme.
CAG observed that this reflected 'a major push toward welfare-oriented transfers rather than capital formation'.
At the same time, the report pointed to a 54.69% decline in housing expenditure and a 31.81% reduction in spending on water supply and sanitation, warning that the contraction in infrastructure-related investments within the social sector could adversely affect the long-term sustainability of public service delivery.
CAG Recommendations
The auditor recommended that for large DBT schemes such as the Ladki Bahin Yojana, the government should undertake a realistic assessment of beneficiary coverage and fund requirements during budget preparation to avoid unnecessary supplementary grants and unauthorised excess expenditure.
It also advised that withdrawals from the treasury should be strictly linked to actual and immediate expenditure needs, cautioning against the practice of parking funds in VPDAs or similar deposit accounts.
The report concluded that strengthening budget estimation, expenditure controls and financial management would be essential to ensure fiscal discipline in implementing large welfare programmes.
