Key Points
- Ladli Behan Yojana’s Impact: BJP-led Mahayuti returned to power in Maharashtra, but the ambitious welfare scheme has worsened the state’s fiscal deficit.
- CAG Report Raises Alarms: Comptroller and Auditor General (CAG) flagged a ₹2 lakh crore fiscal deficit, citing poor recovery and excessive expenditure.
- Treasury Under Strain: Promised benefits under Ladli Behan Yojana and other schemes face funding shortages, affecting over 52 lakh farmers and micro-irrigation projects.
- Opposition Criticism Validated: Opposition’s warnings about the state’s fragile financial health have been corroborated by the CAG.
Mumbai: The Ladli Behan Yojana, a flagship welfare scheme introduced by Maharashtra’s BJP-led Mahayuti government ahead of the 2024 Assembly elections, has proven to be a political masterstroke, securing their return to power. However, the scheme’s financial repercussions are now evident, with the state’s fiscal deficit crossing a staggering ₹2 lakh crore, as reported by the Comptroller and Auditor General (CAG).
Despite its popularity among voters, the scheme has deepened Maharashtra’s economic woes. Critics, including opposition parties and financial experts, had warned that such ambitious initiatives would strain the state’s already fragile financial health a concern now validated by the CAG’s findings.
CAG Report Highlights Financial Mismanagement
The CAG’s report paints a grim picture of Maharashtra’s fiscal health. It reveals a lack of coordination between the state government’s revenue recovery and expenditure, leading to an unsustainable financial burden. The report also points out that the fiscal strain stems from Ladli Behan Yojana and other election promises, including raising welfare payments from ₹1,500 to ₹2,100 and offering farm loan waivers.
The state’s treasury is reportedly struggling to meet these commitments, leading to disruptions in various welfare and development schemes.
Farmers and Projects Hit by Funding Shortages
The fiscal crunch has had widespread consequences:
- Farmers in Distress: Over 52 lakh farmers are awaiting subsidies, with ₹716 crore in funds withheld for the 2023-24 financial year.
- Micro-Irrigation Stalled: Crucial schemes like micro-irrigation are underfunded, leaving agricultural initiatives in limbo.
In response to the fiscal strain, the government is reportedly reassessing Ladli Behan Yojana beneficiaries to reduce costs, a move that could create political backlash.
Opposition’s Warnings Prove Accurate
Opposition parties had voiced concerns over the scheme’s feasibility, accusing the government of prioritizing political gains over financial prudence. These warnings have now been substantiated by the CAG report, which underscores the growing economic challenges posed by Ladli Behan Yojana and similar initiatives.
Even the state’s Finance Department had earlier advised caution, warning that the scheme could jeopardize Maharashtra’s economic stability.
Looking Ahead: Balancing Welfare and Fiscal Responsibility
The Mahayuti government faces the tough task of balancing its welfare commitments with fiscal responsibility. While Ladli Behan Yojana has undoubtedly boosted the coalition’s political standing, its long-term sustainability is under question.
With Assembly elections drawing closer, the government must address its fiscal crisis to maintain public trust while ensuring that essential welfare schemes remain operational. The state’s economic future now hinges on striking this delicate balance.
