Mahayuti’s vote-winning cash scheme for poor women shrinks under financial strain

In Politics
January 16, 2025
Mahayuti’s vote-winning cash scheme for poor women shrinks under financial strain


The Maharashtra Mahayuti government’s promised scheme, to grant Rs.1,500 every month to women below the poverty line, has begun to show cracks as the State faces a financial crunch in development work.

To overcome the challenge, the government has taken a route that was anticipated before election: it has decided to cut down the list of the beneficiaries of the Ladki Bahin scheme, a direct beneficiary transfer (DBT) scheme that brought Mahayuti back to power from the debacle of Lok Sabha. Out of 2.5 crore beneficiaries, the list could be pruned by up to 15 per cent, according to informed sources. Almost 30 to 35 lakh women would be deleted from the scheme.

After losing badly in the Lok Sabha election with just 17 seats out of 48 in Maharashtra, the Mahayuti government, then led by Shiv Sena’s Eknath Shinde, came up with a copy-paste idea from Madhya Pradesh: the “Mukhyamantri Majhi Ladki Bahin” (Chief Minister, My Beloved Sister) scheme was announced in the State’s June budget with a target to reach 2.5 crore women of the State.

Rs.1,500 per month was set aside for the DBT scheme. The government deposited Rs.7,500 in each woman’s account till October 2024. As the State Assembly election was held in November, the government claimed they were depositing the November installment in October in view of the Model Code of Conduct.

But all this was being done to lure the woman voters ahead of the State Assembly election. Maharashtra has 4.4 crore women voters out of which 2.5 crore women received five instalments of Ladki Bahin before voting on November 20.

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Between July and October 2024, when the entire State machinery was working overtime to make the scheme successful, there were serious concerns about the possible efficacy. All the public works such as maintenance of government buildings to village road repairs were stalled. The pending bills of government contractors amounted to Rs.30,000 crore. The salaries of many government employees, such as semi-aided government college professors and teachers were delayed.

This financial quagmire proved that the Ladki Bahin scheme could not meet its promises.

This harsh reality, which was brushed under the carpet during the election, is now being revealed. Sources in the State’s finance department told Frontline that the women and child development (WCD) department, a nodal department to implement the scheme, has been asked to ‘investigate the complaints’ about possible “false beneficiaries.” Aditi Tatkare, Cabinet Minister for WCD department said, “There will be no blanket scrutiny. We will only look at the cases where the local administration has received complaints or where there is violation of rules.”

When the scheme was announced, the following women could not benefit from the scheme: those with an annual income of more than 2.5 lakhs; owners of four wheelers; those who have shifted out of the State; or do not have domicile certificate; those who do not have bank account linked to Aadhaar; those who already benefit from other government schemes. But, ahead of the Assembly election, the government’s focus was more on the reach of the scheme than making these norms strict before enrollment.

Mahayuti’s panic

Now, after the election, the government, with a huge mandate, is looking into the possible “false” beneficiaries. Highly placed sources in the WCD told Frontline that the scrutiny will prove the omission of 30 lakh names from the list. “There are 2.55 crore beneficiaries right now. In the scrutiny, we are getting records of beneficiaries who have either four wheelers or are benefitting from other schemes. This can lead to deleting almost 12 to 15 per cent of names.”

Mahayuti leaders panicked ahead of the Assembly election. They not only pushed the scheme without much scrutiny but also announced an increase in payment if they came to power again, promising Rs.2,100 per month. If they have to keep their word, the State will need Rs.63,000 crore per year. Maharashtra’s fiscal deficit has already touched Rs.1.10 lakh crore for this financial year. In this situation, the State will have no money left even for salaries. And so, a strict “scrutiny” of the current list is necessary.

Women tie rakhis to Deputy CM Ajit Pawar during Mukhyamantri Majhi Ladki Bahin scheme event, in Solapur in Maharashtra, on October 8, 2024.
| Photo Credit:
PTI

In the first press conference after taking oath as Chief Minister, Devendra Fadnavis said that the increase in amount from Rs.1,500 to 2,100 will take place. “We can do it only if our finances are channelised properly. We will take this at the time of budget.” But the government has not clearly stated when this increase in the amount of Ladki Bahin will be deposited in accounts.

Meanwhile, the opposition has slammed this move to delete the names. Congress Member of Legislative Assembly (MLA) Vijay Wadettiwar described it as it “a betrayal of mandate.” He said: “The government has cheated the sisters of the State. They gave money ahead of the election and are now giving reason for scrutiny. They should have done the scrutiny first. But they used the government money to win the elections.”

Shiv Sena (Uddhav Thackeray) leader and Rajya Sabha Member of Parliament (MP) Priyanka Chaturvedi alleged that the “delete list” of women could touch 50 lakhs. “The government does not have money to sustain the scheme. There is a possibility of 50 lakhs names deleted from the list,” said Chaturvedi. Minister Aditi Tatkare denied the charges: “The opposition is spreading a fake narrative again. Only scrutiny of complaints is going on. There is no intention to delete the names without proper reason.”

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Meanwhile, the State government’s other promises are also affected by the lack of funds. The government has announced farmer loan waivers and pay hikes to employees from several sectors. Each of these assurances have been halted as there is no money with the State treasury.

Mahayuti won the election due to the unprecedented support of woman voters across the State. Out of 288 seats, Mahayuti won 232. The opposition was reduced to just 46. Maharashtra’s voters had not given such a huge mandate for 40 years. There were multiple factors that contributed to the victory, but Ladki Bahin was the most important among them. In such a scenario, the immediate scrutiny of the beneficiary list and a possible reduction of names is not a good politically harbinger for the government.