Maharashtra’s Treasury Funds Dry Up, Tribal Welfare Takes a Hit.

Maharashtra’s state treasury is under severe financial stress, and the impact is now being felt across crucial welfare schemes. In a concerning development, the Mahayuti government has reportedly diverted Rs 746 crore from the Social Justice and Tribal Development departments to fund the “Mukhyamantri Majhi Ladki Bahin” scheme- aimed at providing monthly allowances to women. Due to cash shortages, even the April installment has not been disbursed, causing unrest among beneficiaries.

The government had promised Rs 1,500 per month to women under this flagship scheme, with a further increase to Rs 2,100 post-election. However, sources confirm that the government has failed to fulfill this commitment due to budgetary constraints. Even disbursing the current Rs 1,500 monthly payment is proving financially unsustainable.

Out of the Rs 3,960 crore allocated to the Social Justice and Special Assistance Department as supplementary grants, Rs 410.3 crore has been redirected to the Women and Child Development Department. Furthermore, Rs 335.7 crore from the Tribal Development budget has been transferred for the same purpose. This redirection totals Rs 746 crore and is expected to continue monthly.

As per the 2025–26 state budget, Rs 22,658 crore has been allocated for Scheduled Caste sub-plans, and Rs 21,495 crore for Scheduled Tribe sub-plans. Despite these earmarked allocations, the state government has drawn funds specifically meant for tribal and marginalized communities to cover the shortfall in the women’s welfare scheme.

Experts have flagged this diversion as a violation of existing policy. According to Planning Commission norms, funds allocated to the Tribal Development and Social Justice departments must be spent on the respective communities, proportional to their population share. These funds are non-transferable and cannot legally be diverted to other departments.

A senior official from Mantralaya told Sprouts News that the Mahayuti government has blatantly ignored these guidelines. This decision raises serious ethical and legal questions, especially with elections around the corner and political motivations under scrutiny.

Sprouts News reiterates the need for fiscal transparency and equitable resource distribution. Misallocation of funds reserved for Scheduled Castes and Tribes not only breaches policy but also undermines public trust in state welfare commitments. The Sprouts Team continues its active efforts to expose the mismanagement and policy violations connected to the ruling coalition’s governance, including those linked to the Adani Group and now the misuse of tribal welfare funds.