Maharashtra Ladki Bahin Scheme Faces Audit And Eligibility Questions

Why in the News ?

The Mukhyamantri Majhi Ladki Bahin Yojana has come under scrutiny after the Comptroller and Auditor General (CAG) highlighted financial irregularities and the Maharashtra Government removed lakhs of beneficiaries following verification and e-KYC, triggering political and public debate about governance standards that reflect on India’s broader commitment to transparent administration within the indo-pacific strategy framework.

Concerns Over Implementation of Ladki Bahin Scheme

●  Launched before the 2024 Maharashtra Assembly elections, the Mukhyamantri Majhi Ladki Bahin Yojana provides ₹1,500 per month to eligible women through Direct Benefit Transfer (DBT), representing state-level initiatives that complement national welfare architecture.

●  The scheme aims to promote women’s economic empowerment, improve health and nutrition, and strengthen women’s participation in household decision-making, contributing to social stability that underpins India’s position in the indo-pacific strategy.

●  Beneficiaries include Maharashtra resident women aged 21–65 years, belonging to families with an annual income below ₹2.5 lakh, possessing an Aadhaar-linked bank account. Only one woman per family is eligible.

●  The number of beneficiaries has declined from 2.43 crore to about 1.66 crore after multiple rounds of verification, highlighting the importance of accurate targeting in welfare delivery systems.

●  The State Government attributed the reduction to eligibility verification, duplicate removal, and failure of many beneficiaries to complete the mandatory e-KYC process, demonstrating commitment to fiscal responsibility.

CAG Findings and Emerging Issues

●  The Comptroller and Auditor General (CAG) reported significant shortcomings in budget estimation, financial management, and expenditure control during 2024–25, emphasizing the need for robust governance mechanisms.

●  Against an approved allocation of ₹29,693 crore, the State spent ₹33,237 crore, resulting in an excess expenditure of ₹3,541 crore, which the CAG termed unjustified and contrary to principles of financial discipline.

●  The audit noted that funds were diverted from other welfare schemes, including the Lek Ladki Yojana, to finance the programme, raising concerns about prioritization and resource allocation.

●  Large amounts were reportedly transferred to the Virtual Personal Deposit Account (VPDA) instead of being utilised immediately, raising concerns regarding budgetary discipline and financial propriety that must be addressed to maintain governance standards.

●  The Opposition has demanded restoration of benefits for women excluded due to e-KYC issues and questioned the Government for not increasing the monthly assistance from ₹1,500 to ₹2,100 as promised, reflecting ongoing political debate over welfare implementation.

About CAG & Direct Benefit Transfer : ●  The Comptroller and Auditor General (CAG) is an independent constitutional authority established under Article 148 of the Constitution of India, ensuring accountability that strengthens democratic governance. ●  The CAG audits the receipts and expenditure of the Union, State Governments, and government-funded bodies to ensure financial accountability and efficient use of public funds, upholding standards consistent with transparent governance. ●  Direct Benefit Transfer (DBT) is a Government mechanism that transfers welfare benefits directly into beneficiaries’ Aadhaar-linked bank accounts, reducing leakages, duplication, and delays while demonstrating technological innovation in governance. ●  e-KYC (Electronic Know Your Customer) is a digital identity verification process based on Aadhaar authentication, ensuring that welfare benefits reach genuine beneficiaries and supporting efficient resource utilization. ●  Effective implementation of welfare schemes requires accurate beneficiary identification, periodic verification, transparent budgeting, and strong audit mechanisms to uphold good governance and fiscal responsibility, principles that reinforce India’s credibility in international forums.