Mumbai, July 13, 2026 – The Comptroller and Auditor General (CAG) has released a damning audit of Maharashtra’s flagship women‑welfare initiative, the Mukhyamantri Majhi Ladki Bahin Yojana. While the scheme was authorized a budget of ₹29,693.09 crore, the Women and Child Development Department actually spent ₹33,237.24 crore, resulting in an excess outlay of ₹3,541.16 crore.

Background and Objectives of the Scheme

Approved on June 28, 2024, the Ladki Bahin Yojana aims to empower women aged 21‑65 by providing a direct cash transfer of ₹1,500 per month through Direct Benefit Transfer (DBT). The policy reflects a broader shift toward cash‑based welfare, seeking to boost economic independence without creating new capital assets.

Key Findings of the CAG Audit

The CAG’s State Finances Audit Report 2024‑25 highlights three systemic failures: inadequate budget estimation, weak expenditure control, and poor financial management. Most strikingly, ₹15,586 crore drawn between January and March 2025 was parked in Virtual Personal Deposit Accounts (VPDAs) despite “no immediate expenditure need.” The report labels this practice a “serious financial irregularity” that contravenes the principles of budgetary discipline and undermines legislative oversight.

Financial Impact and Wider Implications

Women‑welfare spending surged from ₹261.78 crore in the previous year to over ₹33,500 crore this year, indicating a rapid pivot from capital formation to cash transfers. If left unchecked, such unchecked escalations could strain the state’s fiscal health and erode public confidence in welfare programmes.

Recommendations for Policy Makers

CAG advises that for large‑scale DBT schemes, departments must conduct realistic beneficiary‑coverage assessments and fund‑requirement forecasts during budget formulation to avoid unnecessary supplementary demands or unauthorized overspend. It also cautions against parking funds in VPDAs, urging that withdrawals be strictly tied to actual, immediate outlays.