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Maharashtra Diverts ₹746 Crore SC/ST Welfare Funds to Sustain Ladki Bahin Scheme

Facing fiscal strain, the government redirects funds to cover April payouts for its flagship welfare program, raising legal and political concerns.

Mumbai, India - Aug. 16, 2024: Women expressing their happiness over the deposit of ?3000 in women's accounts under the Maharashtra Government's Ladki Bahin Yojana in Mumbai, India, on Friday, August 16, 2024. (Photo by Satish Bate/ Hindustan Times) (Hindustan Times)
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Overview

  • The Maharashtra government issued a resolution on May 3, 2025, reallocating ₹746 crore from SC/ST welfare budgets to the Ladki Bahin scheme.
  • The diverted funds include ₹410.30 crore from the Social Justice Department and ₹335.70 crore from the Tribal Development Department.
  • Officials are divided on the legality of the move, with some citing Planning Commission guidelines prohibiting such reallocations, while others argue it is technically permissible.
  • The Ladki Bahin scheme, providing ₹1,500 monthly to 24.6 million underprivileged women, was a key factor in the BJP-led Mahayuti alliance’s 2024 electoral victory.
  • The reallocation underscores the state’s financial challenges, with a revenue deficit of ₹45,892 crore making it difficult to sustain welfare commitments.