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Maharashtra Redirects ₹746 Crore from SC/ST Welfare to Women’s Scheme, Faces Backlash

The fund reallocation, executed via a May 3 resolution, has prompted legal challenges, coalition discord, and concerns over compliance with mandated financial safeguards.

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 diverted ₹746 crore from SC/ST welfare budgets to sustain the Ladki Bahin Yojana, a flagship women’s welfare scheme providing ₹1,500 monthly to over 24.6 million beneficiaries.
  • The reallocation involved ₹410.30 crore from the Social Justice Department and ₹335.70 crore from the Tribal Development Department, raising legal concerns over violations of Union Finance Commission guidelines.
  • Social Justice Minister Sanjay Shirsat criticized the decision as illegal and high-handed, suggesting his department might as well be shut down if its funds are repeatedly redirected.
  • The April 2025 installment for the Ladki Bahin scheme is expected to be disbursed soon following the fund diversion, but payments for May remain uncertain.
  • The move has deepened rifts within the ruling Mahayuti alliance, with opposition leaders and coalition members accusing the government of undermining welfare for marginalized communities to sustain populist promises.