Maharashtra Chief Minister Devendra Fadnavis arrives at the Vidhan Bhavan in Mumbai on Wednesday. (Photo: Ganesh Shirsekar)THE Devendra Fadnavis-led Mahayuti government may likely cut the budget allocation for the Mukhyamantri Majhi Ladki Bahin Yojana by up to 20 per cent in 2026-27 compared with the current financial year following a sharp fall in the number of beneficiaries after a state-wide verification exercise. Further, the promised hike in payout to Rs 2,100 a month from Rs 1,500 now may have to wait.According to government sources, the number of beneficiaries has dropped from around 2.43 crore, at its peak, to approximately 1.8 crore after Aadhaar-linked e-KYC checks and cross-verification with Income Tax and other databases. The clean-up exercise followed irregularities flagged over the past year.“The verification drive has removed nearly 60 lakh beneficiaries from the rolls. The numbers have stabilised post-verification and the allocation will reflect that. We are looking at whether the reduction in beneficiaries translates into savings of up to Rs 9,000 crore and whether that should be passed on in the Budget allocation,” said a source, who did not wish to be identified.Finance Secretary OP Gupta did not respond to a request for comment on plans for proposing cuts to the scheme following KYC checks and a drop in beneficiaries. But a senior government official told The Indian Express, “The E-KYC verification would go on till March 31, and after that the final number of beneficiaries would also come to fore. Once that is done and if there is a need for increasing or even reducing the funds for the scheme, it can be done through the supplementary demands that are presented thrice in the year during the three sessions.”In Budget 2025-26, the state had provided Rs 36,000 crore for the scheme. After its launch in July 2024 ahead of the Assembly elections in the state, the beneficiary count surged to about 2.43 crore. At that level, the annual payout at Rs 1,500 per month implied a liability of nearly Rs 43,700 crore. Hence, in the supplement demand for grants, another Rs 6,102 crore was provided, taking the total allocation to Rs 42,102 crore for the current financial year.The scheme is available to all women aged 21–65 years from families earning less than Rs 2.5 lakh annually. Further, government employees and income-tax payers are excluded under the eligibility criteria. The scheme is amongst the largest unconditional cash transfer schemes in the country which involve direct payments to beneficiaries without performance benchmarks or conditions on how the money is used.The 16th Finance Commission even singled out the BJP-ruled Maharashtra and Odisha, and opposition-ruled Jharkhand, as among the states that have seen the steepest rise in such spending over the past two years. It has warned that if states continue to allocate rising proportions of revenue expenditure to such transfers, they will not only impose a significant burden on their budgets but also destabilise their finances in the long run. It also recommended periodic review of beneficiary lists and cautioned that once introduced, subsidy schemes tend to become “committed” expenditure, and called for a sunset clause in such direct cash benefit schemes.Story continues below this adInformation accessed by The Indian Express earlier under the Right to Information Act had revealed that at least 12,915 government employees received benefits under the scheme despite being explicitly excluded. Earlier disclosures had also shown that at least 12,431 men and 77,980 ineligible women received payments, resulting in wrongful disbursal of at least Rs 164 crore, a figure that could go higher once the overall e-KYC drive is completed by March end this year.In August last year, the Women and Child Development Department had also flagged nearly 26 lakh accounts for scrutiny and suspended payments to 26.34 lakh beneficiaries pending verification. District-level physical verification was initiated, and a statewide e-KYC drive was made mandatory to prevent further irregularities.Officials said income thresholds, employment status and duplicate entries were rechecked during the verification process.Vallabh Ozarkar is a Senior Correspondent with The Indian Express' Mumbai bureau, recognized as an authoritative and deeply knowledgeable voice on the politics, governance, and infrastructure of Maharashtra. With more than nine years of experience in major news organizations, his reporting delivers high standards of Expertise and Trustworthiness. Expertise & Authority Current Role: Senior Correspondent, The Indian Express, Mumbai bureau. Geographical Specialization: Provides exclusive and detailed coverage of Maharashtra politics and governance, operating at the epicenter of the state's decision-making in Mumbai. Core Authority: His reporting demonstrates deep Expertise across critical and often complex state matters, including: Political Dynamics: In-depth analysis of the ruling coalition (Mahayuti) and opposition (MVA), internal party conflicts, and crucial election updates, including local body polls and municipal corporation tussles. Governance & Policy: Focused coverage on significant state policies, such as the overhaul of Mumbai's 'pagdi system' (rent control for old buildings) and social welfare schemes (e.g., Ladki Bahin Yojana accountability). Infrastructure & Development: Reports on major urban and regional infrastructure projects, including the Mumbai Water Metro, Uttan-Virar Sea Link, and Thane Metro development. Administrative Oversight: Follows legislative actions, cabinet decisions, and reports on issues of accountability and alleged fraud within state departments. Experience Current Role: His role at The Indian Express—a leading national daily—validates the credibility and standard of his reporting. Career Foundation: Prior to The Indian Express, Vallabh contributed to other major metropolitan news outlets, including the Mumbai Mirror and DNA - Daily News & Analysis, providing a solid foundation in rigorous urban and political journalism. Evidence of Impact: His work consistently breaks down complex political developments and administrative failures, such as exposing discrepancies in government welfare schemes, cementing his reputation as a trusted source for ground-level, impactful news from Maharashtra. 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