Nagpur: The Comptroller and Auditor General (CAG) has delivered a scathing assessment of the financial management of the Maharashtra Government’s flagship Mukhyamantri Majhi Ladki Bahin Yojana, pointing to serious lapses in budget planning, expenditure control and fund management during the scheme’s first year of implementation.
In its State Finances Audit Report for 2024-25, tabled during the Monsoon Session of the Maharashtra Legislature, the constitutional auditor observed that the implementation of the women-centric welfare scheme suffered from “significant deficiencies in budget estimation, expenditure control and financial management.”
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One of the most striking findings of the audit is that the Women and Child Development Department incurred an excess expenditure of Rs 3,541.16 crore over the sanctioned grant without furnishing “any specific justification” to the audit authorities.
The report states that the State Government initially provided Rs 26,200 crore for the scheme through supplementary demands during 2024-25. Subsequently, Rs 3,490.75 crore was re-appropriated from the Lek Ladki Yojana, taking the total available allocation to Rs 29,693.09 crore.
However, the department ultimately spent Rs 33,237.24 crore, exceeding the approved allocation by Rs 3,541.16 crore.
The CAG noted that despite the substantial overspending, the department failed to provide any convincing explanation or financial justification for the excess expenditure.
Rs 15,586 crore parked in deposit accounts
The audit also questioned the Government’s handling of public funds, revealing that Rs 15,586 crore, withdrawn between January and March 2025, was transferred to Virtual Personal Deposit Accounts (VPDA) instead of being immediately utilised for beneficiary payments.
According to the report, these government-managed accounts were used to temporarily hold public money despite there being no immediate requirement for expenditure.
The CAG categorically termed the practice as “parking of funds”, observing that money was withdrawn from the Consolidated Fund without corresponding expenditure needs.
Such a practice, the report warned, undermines budgetary discipline, financial propriety and legislative control over public finances, besides presenting a distorted picture of government expenditure.
The audit further remarked that both the unexplained excess spending and the parking of funds pointed to weak budget estimation, poor expenditure planning and inadequate financial controls within the implementing department.
The report also highlighted a dramatic shift in Maharashtra’s social sector spending pattern during 2024-25. Expenditure on women welfare surged from just Rs 261.78 crore in 2023-24 to Rs 33,554.36 crore in 2024-25, primarily due to the rollout of the Mukhyamantri Majhi Ladki Bahin Yojana.
According to the CAG, this reflects a significant policy shift towards welfare-oriented Direct Benefit Transfers (DBTs) rather than capital creation and long-term infrastructure development.
At the same time, the audit recorded a 54.69 per cent decline in housing expenditure and a 31.81 per cent reduction in spending on water supply and sanitation compared to the previous financial year.
The CAG cautioned that this contraction in infrastructure-related investment within the social sector could adversely affect the sustainability and quality of essential public services in the long run.
To prevent recurrence of such irregularities, the CAG recommended that the State Government undertake a realistic assessment of beneficiary coverage and funding requirements while preparing budgets for large Direct Benefit Transfer schemes.
The audit also stressed the need for stronger expenditure controls, improved financial planning and more accurate budget estimates to avoid repeated supplementary demands and excess spending.
About the scheme
The Mukhyamantri Majhi Ladki Bahin Yojana was launched on June 28, 2024, ahead of the Maharashtra Assembly elections by the then Mahayuti Government. Under the scheme, eligible women between 21 and 65 years of age, belonging to families with an annual income below Rs 2.5 lakh, receive Rs 1,500 per month through Direct Benefit Transfer. The scheme is implemented by the Women and Child Development Department.
While the audit does not question the objective or benefits of the welfare scheme, it raises serious concerns over the manner in which public funds were budgeted, withdrawn and managed, calling for greater fiscal discipline and stronger financial oversight in implementing one of Maharashtra’s largest welfare programmes.
Highlights
• CAG finds “significant deficiencies” in budgeting, expenditure control and financial management of Mukhyamantri Majhi Ladki Bahin Yojana.
• Women and Child Development Department spent Rs 3,541.16 crore more than the sanctioned allocation without “any specific justification”.
• Audit flags parking of Rs 15,586 crore in Virtual Personal Deposit Accounts (VPDA) during the last quarter of 2024-25.
• CAG says practice undermines budgetary discipline, financial propriety and legislative control over public finances.
• Women welfare expenditure jumped from Rs 261.78 crore to Rs 33,554.36 crore, while spending on housing and water supply declined sharply.
• Audit recommends realistic beneficiary assessment and better financial planning for large Direct Benefit Transfer (DBT) schemes.
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