Ladli Behna Yojana grapples with financial challenges

The Madhya Pradesh government’s much-publicised flagship initiative, the Ladli Behna Yojana, launched just months ahead of the 2023 Assembly elections, is now grappling with financial and administrative challenges. The scheme, which was initially launched in June 2023 to provide direct cash assistance to women from economically weaker sections, has seen a steady decline in beneficiary numbers and is reportedly under strain due to a shortage of funds.

Launched by then Chief Minister Shivraj Singh Chouhan, the scheme began with a monthly transfer of `1,000 to eligible women aged between 21 and 60 years. At its peak, over 1.34 crore women were registered beneficiaries. Chouhan had promised to eventually raise the amount to `3,000 per month, making the scheme a central element of his re-election strategy. However, since August 2023, the number of beneficiaries has reduced to 1.27 crore, a reduction of 7 lakh. Government officials attribute this drop to the automatic exclusion of women who crossed the upper age limit of 60 years. No new beneficiaries have been added to the list over the past 23 months, raising questions about the scheme’s sustainability.

After the elections, and the change in leadership with Dr Mohan Yadav assuming the Chief Minister’s office, there were sporadic protests from women who had supported the previous government. CM Yadav had assured the public that no welfare scheme launched by his predecessor would be discontinued. Yet, internal sources suggest that the financial burden of the Ladli Behna Scheme — estimated at `47 crore per month — is weighing heavily on the state exchequer.

In a notable development, the scheme’s official portal now includes an option for beneficiaries to voluntarily opt out, further fueling speculation about its future. Political observers believe the state government may wait until after the Bihar Assembly elections, scheduled for October this year, to make significant changes to the scheme. There is growing speculation that the number of beneficiaries may be drastically reduced or that a new welfare program may replace it.

While talking to The Pioneer, Madhya Pradesh Congress spokesperson Mithun Ahirwar, alleged that both the ruling BJP and bureaucrats are reluctant to continue the scheme in its current form. “Since the benefits are directly transferred to the bank accounts of women, there’s minimal scope for misappropriation. This doesn’t suit many,” Ahirwar said.