13 July,2026 01:58 PM IST | Mumbai | mid-day online correspondent
File Photo. Pic/PTI
The Comptroller and Auditor General (CAG) has pointed to significant financial irregularities in the implementation of the Maharashtra government's flagship Mukhyamantri Majhi Ladki Bahin Yojana, highlighting excess expenditure of Rs 3,541.16 crore, large-scale parking of funds in deposit accounts and shortcomings in budget planning and financial management.
The observations are part of the CAG's State Finances Audit Report 2024-25, which was tabled in the Maharashtra Legislature on Friday. The audit examined the financial management of the scheme, which provides monthly financial assistance to eligible women through Direct Benefit Transfer (DBT).
According to the report, the Women and Child Development Department exceeded its authorised budget while implementing the scheme and failed to provide a specific justification for the additional expenditure.
The audit found that the Women and Child Development Department spent Rs 33,237.24 crore on the scheme against an authorised budget of Rs 29,693.09 crore, resulting in excess expenditure of Rs 3,541.16 crore.
The report noted that the total allocation for the scheme comprised Rs 26,200 crore through supplementary budget provisions and Rs 3,490.75 crore re-appropriated from the Lek Ladki Yojana.
However, the CAG observed that the department did not provide any specific explanation for exceeding the sanctioned budget.
The audit described the implementation as being affected by shortcomings in budget estimation, expenditure control and overall financial management.
One of the major observations in the report relates to the transfer of government funds into Virtual Personal Deposit Accounts (VPDAs).
According to the CAG, audit scrutiny revealed that Rs 15,586 crore withdrawn between January and March 2025 was transferred to these deposit accounts instead of being utilised immediately.
"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.
The audit described the practice as a serious financial irregularity and said it was inconsistent with accepted principles of public financial management.
The CAG stated that transferring funds to VPDAs without an immediate requirement was "contrary to principles of budgetary discipline and financial propriety" and weakened legislative oversight over public expenditure.
According to the report, government departments should withdraw funds from the treasury only when they are required for actual expenditure rather than retaining them in intermediary accounts.
The audit said better financial planning and expenditure monitoring would help improve transparency and accountability in the implementation of large welfare programmes.
The report also highlighted a significant increase in spending under the women's welfare sector during the financial year.
According to the audit, expenditure on women's welfare rose from Rs 261.78 crore in the previous year to more than Rs 33,500 crore following the launch of the Mukhyamantri Majhi Ladki Bahin Yojana.
The CAG observed that this reflected "a significant shift toward welfare-oriented transfers rather than capital asset formation."
The scheme, approved on June 28, 2024, aims to promote the economic independence of women by providing eligible beneficiaries between the ages of 21 and 65 years with financial assistance of Rs 1,500 per month through the Direct Benefit Transfer mechanism.
To improve the implementation of large DBT-based welfare schemes, the CAG recommended that the Women and Child Development Department undertake realistic assessments of beneficiary numbers and funding requirements while preparing annual budgets.
The audit said such planning would help avoid excessive supplementary demands and unauthorised expenditure during the financial year.
It also advised the state government against parking funds in VPDAs or similar accounts, stating that withdrawals from the treasury should be directly linked to actual and immediate expenditure requirements to ensure greater fiscal discipline and compliance with established financial procedures.
(With inputs from PTI)
