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Maharashtra Cuts Ladki Bahin Yojana Funds Amid Rising Debt
The Maharashtra government has significantly reduced the budget allocation for its welfare initiative, the Mukhya Mantri Majhi Ladki Bahin Yojana, due to mounting state debt and a growing revenue deficit. In the 2025-26 budget, the scheme’s allocation has been slashed by ₹10,000 crore, reducing it from ₹46,000 crore to ₹36,000 crore.
Rising State Debt
Maharashtra’s debt burden has surged to an unprecedented ₹9.3 lakh crore for the fiscal year 2025-26, marking an increase of ₹2 lakh crore from the previous year. This represents a nearly threefold increase in a decade, intensifying concerns about the state’s financial sustainability.
Revenue Deficit and Budget Constraints
The state’s revenue deficit has more than doubled, reaching ₹45,891 crore for 2025-26, compared to the previous estimate of ₹20,051 crore. In light of these financial pressures, the government has opted to maintain existing schemes while avoiding new high-expenditure initiatives. Key promises from the Mahayuti poll manifesto, including raising the Ladki Bahin Yojana monthly stipend from ₹1,500 to ₹2,100 and implementing a farm loan waiver, have been put on hold. The budget does not allocate funds for these enhancements, reflecting the government’s cautious approach toward fiscal management.
Government’s Fiscal Strategy
Despite financial constraints, the government has made adjustments in other areas. The district annual plan has been increased by 11%, reaching ₹20,165 crore. Additionally, allocations for scheduled caste and tribal welfare programs have been increased by 42% and 40%, respectively. Revenue generation measures, including new motor vehicle taxes and increased stamp duty on specific transactions, are expected to raise ₹1,125 crore.
Deputy Chief Minister Ajit Pawar, who also serves as the state’s finance minister, emphasized that Maharashtra’s fiscal deficit remains within the prescribed limits. The state’s fiscal deficit stands at 2.76% of Gross State Domestic Product (GSDP), while total debt is at 18.7% of GSDP, below the 25% threshold.
Opposition Criticism
Opposition leaders have strongly criticized the budget cuts. Uddhav Thackeray condemned the government’s decision, calling it a betrayal of welfare promises. He pointed out that the budget lacks provisions for increasing the Ladki Bahin Yojana stipend and implementing a farm loan waiver, arguing that the focus appears to be on benefiting contractors rather than the public.
Future Implications
As Maharashtra navigates its economic challenges, the government’s approach to managing debt while continuing welfare schemes will be closely monitored. Beneficiaries of the Ladki Bahin Yojana and other social programs remain uncertain about how these budgetary changes will impact them, with concerns rising over the state’s long-term financial strategy.
