CAG flags ₹3,541 crore excess spend, ₹15,586 crore fund parking in Maharashtra’s Ladki Bahin Yojana

Published 13 July 2026 · india

The Comptroller and Auditor General (CAG) has highlighted serious concerns over financial management in Maharashtra’s flagship Mukhyamantri Majhi Ladki Bahin Yojana, pointing to excess expenditure

The Comptroller and Auditor General (CAG) has highlighted serious concerns over financial management in Maharashtra’s flagship Mukhyamantri Majhi Ladki Bahin Yojana, pointing to excess expenditure of ₹3,541.16 crore, large-scale parking of funds, and weaknesses in budget allocation and planning, as per a PTI report. As detailed in the CAG State Finances Audit Report 2024-25, tabled in the Maharashtra legislature, the Women and Child Development Department spent ₹33,237.24 crore on the scheme against the approved allocation of ₹29,693.09 crore. The department, the report explained, did not provide a specific explanation for the additional spending. The audit also clearly elucidated the fact that ₹15,586 crore withdrawn between January and March 2025 was transferred to Virtual Personal Deposit Accounts (VPDAs) rather than being utilised immediately.

The CAG termed this practice a violation of financial discipline, stating that funds should not be drawn from the treasury unless there is an immediate expenditure requirement. This withdrawal and parking of funds in VPDAs without immediate requirements, according to the CAG, highlights a serious financial irregularity. It is also ‘contrary to the principles of budgetary discipline and financial prosperity.’ Not only this, but it also undermines the legislative control and authority over public finances. Key financial observations by CAG Issue flagged CAG’s observation Excess expenditure ₹ 3,541.16 crore spent beyond the authorised budget Total expenditure ₹ 33,237.24 crore incurred on the scheme Approved allocation ₹ 29,693.09 crore, including supplementary grants Funds parked in VPDAs ₹ 15,586 crore transferred between January and March 2025 Main concern Weak budget estimation, financial irregularities and poor expenditure control What is the Ladki Bahin scheme?

The Ladki Bahin scheme, approved on 28 June 2024, provides ₹1,500 per month through Direct Benefit Transfer (DBT) to eligible women aged 21 to 65. The initiative was launched with the stated objective of promoting women’s economic independence and empowerment. The scheme represented a major shift in the state’s welfare spending The CAG observed that the scheme represented a major shift in the state’s welfare spending. Expenditure on women’s welfare increased sharply from ₹261.78 crore in the previous year to more than ₹33,500 crore, reflecting a move towards large-scale direct benefit transfers rather than asset creation. Furthermore, the audit recommended that all departments responsible for implementing major DBT programmes should undertake realistic, fact-based assessments of beneficiary numbers and total funding requirements when drafting budgets.