CAG flags Rs 3,541 crore excess spending in Maharashtra's Ladki Bahin scheme implementation

The Comptroller and Auditor General CAG has pointed to significant financial irregularities in the implementation of the Maharashtra governments flagship Mukhyamantri Majhi Ladki Bahin Yojana highlighting excess expenditure of Rs 354116 crore largescale parking of funds in deposit accounts and shortcomings in budget planning and financial managementThe observations are part of the CAGs State Finances Audit Report 202425 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 DBTAccording 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 expenditureCAG flags expenditure beyond approved budgetThe audit found that the Women and Child Development Department spent Rs 3323724 crore on the scheme against an authorised budget of Rs 2969309 crore resulting in excess expenditure of Rs 354116 croreThe report noted that the total allocation for the scheme comprised Rs 26200 crore through supplementary budget provisions and Rs 349075 crore reappropriated from the Lek Ladki YojanaHowever the CAG observed that the department did not provide any specific explanation for exceeding the sanctioned budgetThe audit described the implementation as being affected by shortcomings in budget estimation expenditure control and overall financial managementAudit questions transfer of funds to deposit accountsOne of the major observations in the report relates to the transfer of government funds into Virtual Personal Deposit Accounts VPDAsAccording to the CAG audit scrutiny revealed that Rs 15586 crore withdrawn between January and March 2025 was transferred to these deposit accounts instead of being utilised immediatelyThis largescale withdrawal indicates that the funds were not required for immediate use and were drawn from the treasury without actual expenditure needs the report saidThe audit described the practice as a serious financial irregularity and said it was inconsistent with accepted principles of public financial managementParking of funds undermines budgetary disciplineThe 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 expenditureAccording 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 accountsThe audit said better financial planning and expenditure monitoring would help improve transparency and accountability in the implementation of large welfare programmesSharp rise in welfare expenditure notedThe report also highlighted a significant increase in spending under the womens welfare sector during the financial yearAccording to the audit expenditure on womens welfare rose from Rs 26178 crore in the previous year to more than Rs 33500 crore following the launch of the Mukhyamantri Majhi Ladki Bahin YojanaThe CAG observed that this reflected a significant shift toward welfareoriented transfers rather than capital asset formationThe 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 1500 per month through the Direct Benefit Transfer mechanismCAG recommends stronger financial planningTo improve the implementation of large DBTbased welfare schemes the CAG recommended that the Women and Child Development Department undertake realistic assessments of beneficiary numbers and funding requirements while preparing annual budgetsThe audit said such planning would help avoid excessive supplementary demands and unauthorised expenditure during the financial yearIt 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 proceduresWith inputs from PTI