Maharashtra Slashes Ladki Bahin Yojana Funds by ₹10,000 Crore Amid Rising Debt

The Maharashtra government has announced a significant reduction in the budget allocation for the Mukhya Mantri Majhi Ladki Bahin Yojana, cutting its funds by ₹10,000 crore for the financial year 2025-26.

This move comes as the state grapples with mounting debt and a widening fiscal deficit, forcing the government to focus on financial prudence rather than new welfare initiatives.

Ladki Bahin Yojana: A Flagship Welfare Scheme

Launched as a pre-election promise, the Mukhya Mantri Majhi Ladki Bahin Yojana was designed to provide financial assistance to women in Maharashtra, ensuring economic support for those in need. Under the scheme, eligible women were to receive a monthly stipend of ₹1,500, with a proposed hike to ₹2,100 as per the government’s poll manifesto.

However, despite the overwhelming mandate received in the 2024 Assembly Elections, the budget has not approved this increase, reflecting the government’s financial constraints.

Budget Cuts and Scrutiny of Beneficiaries

For 2025-26, the Maharashtra government has allocated ₹36,000 crore for the scheme, a sharp decline from last year’s allocation. The reduction in funds is accompanied by a stricter scrutiny process, with authorities reassessing and trimming the number of beneficiaries to optimise spending.

This step aligns with the state’s broader strategy of maintaining fiscal discipline while sustaining existing welfare programs. The budget, however, does not introduce any major new schemes, signaling a cautious approach to public spending.

Mounting Debt and Revenue Deficit: The Bigger Picture

Maharashtra’s financial health has been a growing concern, with the state’s debt projected to reach ₹9.3 lakh crore in 2025-26, marking its highest-ever level. Additionally, a steep revenue deficit of ₹45,891 crore has further limited fiscal maneuverability.

What This Means for Beneficiaries

The cut in funds and the stricter selection process for beneficiaries may limit the scheme’s reach, potentially affecting thousands of women who were counting on this financial support. The delay in the proposed stipend hike also raises concerns about the government’s ability to fulfill its election promises, particularly for marginalised communities dependent on these schemes.

Conclusion

The ₹10,000 crore cut in the Ladki Bahin Yojana is a clear indication that financial constraints are shaping policy decisions.

As the government reassesses beneficiaries and tightens fiscal policies, the impact of these changes on the scheme’s effectiveness remains to be seen.

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