State diverts SC/ST funds for Ladki Bahin scheme | Mumbai news

Mumbai: The cash-strapped Maharashtra government has diverted a budgetary allocation of ₹746 crore meant for Schedule Castes (SCs) and Schedule Tribes (STs) to the Majhi Ladki Bahin Yojana, its flagship welfare scheme for women, according to a government resolution (GR) issued on Friday. The decision, which is yet another indicator of the fiscal strain the Maharashtra government is under, goes against guidelines issued by the union finance commission, officials said.

According to the GR, the state has sanctioned the utilisation of ₹410.30 crore out of the ₹3,960 crore allocated for scheme expenditure by the social justice department and ₹335.70 crore of the ₹3,240 crore allocated for the tribal development department for the Ladki Bahin scheme. The diverted funds would be utilised for Ladki Bahin beneficiaries belonging to the SC and ST socio-economic groups, the GR said.

State government officials are divided over the legalily of the decision. “The planning commission guidelines do not allow such diversions and the outlay has to be spent on SCs and STs only,” said an official from the social justice department. “Some states like Odisha, Karnataka and Andhra Pradesh have made laws making the allocation meant for SCs and STs non-transferable and non-lapsable. This means the entire allocation for these classes should be utilised in the financial year.”

The official added that the Maharashtra government was planning to introduce a similar law, but it was opposed to by a certain section of political leaders.

On the other hand, an official from the state finance department insisted that, technically, there’s nothing wrong with the government’s order. “The GR says that the funds for the Ladki Bahin scheme used from these two departments will be utilised for the scheme beneficiaries from the two classes. Earlier, too, there had been such allocation from funds meant for SCs and STs for the schemes from other departments. For instance, SC and ST funds are used for pension schemes like the Sanjay Gandhi Niradhar Yojana and the Shravan Bal Nivrutti Vetan Yojana,” said the officer.

There are as many as 24.6 million registered beneficiaries under the Ladki Bahin scheme, which provides underprivileged women a monthly allowance of ₹1,500. The Maharashtra government allocates ₹3,800 crore per month for the disbursement every month.

The scheme was credited with being one of the major reasons behind the Bharatiya Janata Party-led Mahayuti alliance’s landslide win the 2024 assembly elections. However, with an estimated revenue deficit of ₹45,892 crore in FY 2025-26, the Mahayuti government is now finding it difficult to make budgetary allocations for the various populist schemes it announced ahead of the assembly elections.