The Comptroller and Auditor General's (CAG) State Finances Audit Report for the financial year of 2024-25 recommended that the government make a more realistic assessment of beneficiary coverage and fund requirements. (Express file photo)Questioning the financial management of the Mukhyamantri Majhi Ladki Bahin Yojana, the Comptroller and Auditor General (CAG) has said its implementation in 2024-25 was marked by “significant deficiencies in budget estimation, expenditure control and financial management”, after finding that the Maharashtra government’s Women and Child Development Department incurred an excess expenditure of about Rs 3,541 crore under the scheme without providing “any specific justification”.The Comptroller and Auditor General‘s (CAG) State Finances Audit Report for the financial year of 2024-25 recommended that the government make a more realistic assessment of beneficiary coverage and fund requirements while framing budgets for large direct benefit transfer (DBT) schemes, and ensure that funds are drawn only when required for immediate expenditure instead of being parked in deposit accounts.The audit also found that Rs 15,586 crore drawn during January-March 2025, the last quarter of the financial year, was transferred to Virtual Personal Deposit Accounts (VPDA) government-managed deposit accounts used to hold funds before disbursal, during the last quarter of the financial year despite there being no immediate utilisation requirement. The CAG said this indicated “parking of funds” and drawal without commensurate expenditure requirements. The report added that “such practices undermine the principles of budgetary discipline, financial propriety and legislative control over public finances.”It further observed that the unexplained excess expenditure and parking of funds in VPDA accounts “reflects weak budget estimation, inadequate financial controls.”Must Read | CAG slams Maharashtra’s Jal Jeevan Mission: Report points at faulty planning, financial managementThe report also pointed to a sharp shift in the state’s social sector spending during the year. Expenditure on women welfare jumped from Rs 261.78 crore in 2023-24 to Rs 33,554.36 crore in 2024-25, largely because of the Mukhyamantri Majhi Ladki Bahin Yojana, which, it observed, “reflects a major push toward welfare-oriented transfers rather than capital formation.”At the same time, expenditure on housing fell by 54.69 per cent and spending on water supply and sanitation by 31.81 per cent compared with the previous financial year. The CAG said this reflected “a contraction in infrastructure-related investments within the social sector”, which “could adversely affect the sustainability of service delivery”.Launched on June 28, 2024, ahead of the Assembly elections, the Mukhyamantri Majhi Ladki Bahin Yojana was introduced by the Mahayuti government, comprising the BJP, the Shiv Sena led by then Chief Minister Eknath Shinde, and the NCP led by then Deputy Chief Minister Ajit Pawar. Under the scheme, eligible women aged 21 to 65 with an annual family income of less than Rs 2.5 lakh receive Rs 1,500 a month through direct benefit transfer (DBT). The scheme is implemented by the Women and Child Development Department.Story continues below this adAccording to the report, the state provided Rs 26,200 crore for the scheme through supplementary demands during 2024-25. It also re-appropriated Rs 3,490.75 crore from the Lek Ladki Yojana, a state scheme that provides financial assistance to girls from economically weaker families at different stages of their education, taking the total grant available for the scheme to Rs 29,693.09 crore.Also Read | Touted as Maharashtra poll ‘game changer’, why Ladki Bahin turns into Mahayuti’s big challengeAgainst this, the Women and Child Development Department incurred an expenditure of Rs 33,237.24 crore, resulting in excess expenditure of Rs 3,541.16 crore. The report noted that the department “did not provide any specific justification” for the excess spending. Referring to the excess expenditure, the CAG recommended “realistic assessment of beneficiary coverage and fund requirements while formulating budget estimates for large DBT schemes, so as to avoid excess expenditure and supplementary demands.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. He tweets @Ozarkarvallabh ... Read MoreStay updated with the latest - Click here to follow us on InstagramTags:CAGMaharashtra