The Maharashtra government has found itself at the centre of political heat following the decision to divert ₹746 crore from two major welfare departments—the Social Justice and Tribal Development departments—to finance its flagship Ladki Bahin Scheme. This move has triggered strong opposition from within its own ruling alliance, the BJP-led Mahayuti, highlighting deep divisions over the scheme’s financial implications.

Details of the Fund Diversion

According to official communication released on Friday:

• ₹410.30 crore has been taken from the Social Justice Department, which originally had a budget of ₹3,960 crore.

• ₹335.70 crore has been pulled from the Tribal Development Department, which had a ₹3,240 crore allocation.

The combined ₹746 crore will now support Scheduled Caste (SC) and Scheduled Tribe (ST) beneficiaries under the Ladki Bahin Yojana, which is designed to provide monthly financial support to eligible women.

While the government maintains that the funds are still being utilised for the benefit of SC/ST communities, albeit through the Ladki Bahin framework, the method of reallocation has raised serious concerns about transparency and departmental prioritisation.

Why the Ladki Bahin Scheme Is Under Scrutiny

Launched just ahead of the upcoming Maharashtra Assembly elections, the Ladki Bahin Scheme was initially projected to cost ₹46,000 crore, making it one of the largest welfare programs in the state's history. The government credits the scheme for helping secure Mahayuti's return to power.

However, in the latest budget, the allocation was reduced to ₹36,000 crore, with Finance Minister Ajit Pawar claiming this cut reflects “fiscal discipline” and better resource optimisation.

Despite these claims, the reality seems to be at odds with the government’s narrative, as repeated fund reallocations suggest the scheme remains an unsustainable fiscal burden.

Internal Dissent and Criticism from Mahayuti Leaders

The fund transfer has sparked visible discontent within the Mahayuti alliance:

• State Health Minister Prakash Abitkar publicly stated that other departments have suffered ever since the Ladki Bahin scheme was introduced.

• Shiv Sena leader Sanjay Shirsat went a step further, lashing out at Finance Minister Ajit Pawar and accusing the government of undermining the Social Welfare Department. He was quoted saying:
  “If the government doesn’t need the Social Welfare Department, it should just shut it down.”

His remarks underscore a growing sentiment within the ruling alliance that the scheme’s financial appetite is cannibalising funds meant for other essential public services.

Broader Financial Concerns and Political Impact

The diversion of welfare funds has raised serious questions about the government’s fiscal management. Critics argue that such moves expose the state's vulnerability to populist schemes that are rolled out without long-term budgetary planning.

There’s also the concern that the SC/ST-specific allocations are being diluted, even if redirected within another welfare scheme. Welfare departments already suffer from chronic underfunding, and this reallocation could lead to essential programmes being delayed or cancelled.

In a state where social justice and tribal rights have long been sensitive issues, the optics of such a move may damage the government’s image, especially among its core voter base.

Background: What is the Ladki Bahin Scheme?

The Ladki Bahin Scheme offers monthly financial assistance to eligible women across Maharashtra, especially aimed at empowering female members of economically weaker families. Initially lauded for its intention to boost gender inclusivity and economic independence, the scheme has since faced mounting criticism for its sheer scale and cost.

It includes cash transfers and access to subsidised resources, and its large budget initially earned praise across political circles. However, sustaining the financial load of such a massive program has proven problematic.

Pattern of Fund Cuts and Reallocation

This is not the first instance of budgetary reshuffling to sustain the scheme:

• In previous months, other smaller departments have also reported cuts or deferred disbursements.

• Reports suggest that internal memos within government offices had warned about budget overruns and unsanctioned diversions.

This latest ₹746 crore transfer is the most significant and visible instance, further fuelling the ongoing debate on fiscal mismanagement.

Political Stakes Ahead of Assembly Elections

With the 2024 Maharashtra Assembly elections approaching, the ruling government is keen to showcase its flagship welfare schemes. But the backlash from within its alliance and negative press surrounding the diversion of welfare funds could become a serious electoral liability.

Opposition parties are likely to seize this moment to accuse the government of tokenism and vote-bank politics, particularly at the cost of critical departments like Social Justice and Tribal Development.

Conclusion: Governance vs. Populism

The controversy around the Ladki Bahin Scheme reflects a broader struggle in Indian governance—balancing populist measures with sustainable fiscal policies. While empowering women and uplifting marginalised communities remain noble objectives, the execution and funding strategies need clarity, transparency, and balance.

The political fallout from this fund diversion is just beginning, and how the Mahayuti alliance handles internal dissent and public criticism in the coming months will be crucial for its electoral prospects.

The Upcoming IPOs in this week and coming weeks are Srigee DLM, Manoj Jewellers.

The Current active IPO are Wagons Learning, Kenrik Industries.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.