Why is Maharashtra’s Ladki Bahin scheme under scrutiny?, Pg14

Key Highlights:

• The Mukhyamantri Majhi Ladki Bahin Yojana in Maharashtra, launched ahead of the 2024 Assembly elections, provides ₹1,500 monthly to eligible women via Direct Benefit Transfer (DBT).
• The scheme initially covered 2.43 crore beneficiaries, but subsequent verification rounds reduced the number to 1.66 crore.
• The Comptroller and Auditor General (CAG) has raised concerns regarding significant deficiencies in the scheme's budget estimation, expenditure control, and financial management.
• The CAG reported an excess expenditure of ₹3,541.16 crore for the fiscal year 2024-25, with funds reappropriated from other schemes like the Lek Ladki Yojana.

Detailed Insights:

• Eligible women for the scheme must be Maharashtra residents, aged 21-65, have an Aadhaar-linked bank account, and belong to a family with an annual income under ₹2.5 lakh.
• The State government aims to promote economic independence, improve health and nutritional status, and strengthen women's role in family decision-making through the scheme.
• The CAG criticized the scheme for undermining principles of budgetary discipline and financial propriety due to unexplained excess expenditure.
• Large sums, including ₹15,586 crore, were drawn and parked in the Disbursing Officer’s Virtual Personal Deposit Account (VPDA), indicating funds were not for immediate use.
• The reduction in beneficiaries is attributed by the government to verification processes and mandatory e-KYC requirements, which many women failed to complete.
• The Opposition has accused the government of using the scheme for electoral gains and failing to increase monthly assistance as promised.

Key Concepts Involved:

• Direct Benefit Transfer (DBT): A system where government subsidies are directly transferred to beneficiaries' bank accounts, aiming to reduce leakage and improve efficiency.
• Comptroller and Auditor General (CAG): India's supreme audit institution, responsible for auditing all receipts and expenditure of the Union and State governments.
• Budgetary Discipline: Adherence to established financial rules and procedures to ensure efficient and responsible use of public funds, avoiding overspending or misallocation.
• e-KYC: Electronic Know Your Customer, a paperless process for verifying the identity of customers using digital means, often linked to Aadhaar.