CAG Flags ₹3,541 Crore Excess Spending in Maharashtra's Ladki Bahin Scheme

The Comptroller & Auditor General (CAG) released a scathing audit report on Maharashtra's Ladki Bahin scheme, India's largest women-centric welfare initiative providing monthly cash transfers. Key findings: (1) ₹3,541 crore excess expenditure beyond sanctioned budget (January-March 2025); (2) ₹15,586 crore drawn and transferred to Virtual Personal Deposit Accounts (VPDAs) with weak verification mechanisms; (3) Beneficiary deletions exceeding 92 lakh not fully disclosed; (4) Systemic failures in financial controls and audit trails. Background: Launched in August 2024, the scheme disbursed ₹46,000 per woman annually to 2.3+ crore beneficiaries, costing approximately ₹56,000 crore annually—nearly 20% of state budget. Critical issues include: (1) Disproportionate beneficiary lists (overlapping with other schemes); (2) VDPA usage obscuring fund trail; (3) Absence of real-time monitoring systems. Constitutional implications: Article 265 (no taxation without authority), Article 14 (equal protection), and fiduciary accountability doctrine. Exam relevance: Governance failures in welfare schemes, fiscal federalism challenges, role of CAG as constitutional watchdog, public financial management standards, and digital governance risks. Expected questions: How do cash transfer schemes impact fiscal sustainability? Constitutional safeguards against fiscal mismanagement?