Ladki Bahin effect: State sets up panel to cut down spending on sops

MUMBAI: The Maharashtra government is looking for avenues to cut down its spending on ongoing schemes to reduce the burden on the severely depleted exchequer. It has formed a seven-member committee to evaluate and make recommendations for streamlining ongoing schemes—this includes repetition of schemes and beneficiaries, schemes that are outdated and no longer needed and schemes that can be merged. The committee has also been asked to recommend ways to increase financial resources.

The state is in financial distress following the implementation of the Mukhyamantri Majhi Ladki Bahin Yojana, a direct cash benefit scheme for women from economically deprived backgrounds which is costing the exchequer around ₹46,000 crore per annum as per the estimates of the finance department. However, the current situation does not have much scope for major improvement in revenue to tide over the finance crunch. To bring back the fiscal balance, the state government is looking for ways to bring down its expenses and improve its revenue sources.

On Thursday, the finance department issued a government resolution for the formation of a seven-member committee headed by minister of state for finance Ashish Jaiswal. The committee comprises the CEO of MITRA (Maharashtra Institution for Transformation), the additional chief secretary of finance, the additional chief secretary of planning, the principal secretary of expenditure, the secretary of financial reforms and secretaries from other concerned departments.

The GR states that the committee will “evaluate the ongoing schemes being run by different departments and recommend their streamlining to ensure that benefits reach directly to the beneficiaries (and)… discuss a proposal prepared by MITRA in this regard and make their recommendations”.

The committee will “recommend streamlining outdated schemes, where the beneficiaries are getting the benefit of two schemes or the objectives of the schemes are being repeated”. It will also “recommend merging schemes and institutions for efficient utilisation of funds and rapid economic growth,” adds the GR. The committee has further been asked to recommend ways to improve its revenue resources from tax and non-tax avenues.

The state has already decided to prune the list of beneficiaries under the Ladki Bahin Yojana by means of verification and removing ineligible beneficiaries. Apart from those paying income tax, the government will also sift out those beneficiaries who are beneficiaries of schemes such as the Sanjay Gandhi Niradhar Yojana (a pension scheme for destitute women) under which over 2.5 million women get ₹1,500 a month.

Families getting the benefit of one government scheme will also be ineligible for others. Thus, beneficiaries of the Namo Shetkari Samman Yojana (a cash benefit announced in 2019 at the Centre under the PM-Kisan Samman Nidhi and replicated by the state), under which 9.4 million farmers get ₹1,000 a month, and beneficiaries of other government schemes through which farmers get cash benefits for purchasing farm equipment will also be ineligible for the Ladki Bahin list.