CAG flags Rs 3,541 crore excess spend, budgetary lapses in Maharashtra govt's Ladki Bahin scheme

Mumbai: The Comptroller and Auditor General (CAG) has flagged excess expenditure of Rs 3,541.16 crore, parking of thousands of crores in deposit accounts and deficiencies in financial management in the implementation of the Maharashtra government's flagship Ladki Bahin scheme.

The CAG State Finances Audit Report 2024-25, tabled in the state legislature on Friday, noted that the Women and Child Development Department did not provide any specific justification for the substantial excess expenditure.

Also read: Maharashtra's Ladki Bahin beneficiary count drops by 80 lakh after verification drive


The report stated that the Women and Child Development Department spent Rs 33,237.24 crore on the scheme against the authorised budget of Rs 29,693.09 crore, resulting in an excess expenditure of Rs 3,541.16 crore.

The 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 re-appropriated from the Lek Ladki Yojana.

The CAG said audit scrutiny revealed that Rs 15,586 crore drawn 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.

Describing the practice as a serious financial irregularity, the CAG said the drawal and parking of funds in VPDAs without immediate requirement was "contrary to principles of budgetary discipline and financial propriety" and undermined legislative control over public finances.

The audit further observed that the scheme's implementation was marked by "significant deficiencies in budget estimation, expenditure control, and financial management".

It also noted that expenditure on women's welfare increased sharply from Rs 261.78 crore in the previous year to more than Rs 33,500 crore, reflecting "a significant shift toward welfare-oriented transfers rather than capital asset formation".

Also read: 80 lakh Maharashtra women ineligible for Ladki Bahin scheme; Oppn alleges financial crisis

The Mukhyamantri Majhi Ladki Bahin Yojana, approved on June 28, 2024, aims to ensure women's economic independence. Under the scheme, eligible women aged between 21 and 65 years receive Rs 1,500 per month through Direct Benefit Transfer.

The CAG recommended that for large DBT schemes such as the Ladki Bahin Yojana, the department should ensure a realistic assessment of beneficiary coverage and fund requirements during budget formulation to avoid unnecessary supplementary demands or unauthorised excess expenditure.

It also advised the government against parking funds in VPDAs or similar accounts, saying fund withdrawals should be strictly linked to actual and immediate expenditure needs.