Madhya Pradesh slashes Ladli Behna Scheme budget, adds insurance and pension coverage for women beneficiaries

The Madhya Pradesh government revealed on Wednesday that the allocation for the Laadli Behna scheme has been reduced to Rs 18,669 crore for the fiscal year 2026, down from Rs 18,984 crore in the previous fiscal year. The proposed budget extended insurance and pension coverage for the 1.27 crore women beneficiaries of the CM Ladli Behna Scheme, which proved to be instrumental in the BJP's success during the 2023 Vidhan Sabha elections. 

“This budget proposes to work for linking beneficiaries of Ladli Behna Scheme and other ambitious schemes of the state government with the central government’s insurance and pension schemes, including the PM Jeevan Jyoti Insurance Scheme, PM Jeevan Suraksha Insurance Scheme and the Atal Pension Scheme,” MP finance minister Jagdish Devda said.

During the budget proposal, Rs 18,669 crore was allocated for the Ladli Behna Scheme, benefiting 1.27 crore financially weak women who have been receiving Rs 1250 monthly since September 2023. However, the minister did not specify when the monthly installment will be increased under the scheme. The BJP had pledged in its 2023 poll manifesto to gradually raise the monthly sum to Rs 3000 by 2028, but it has remained stagnant at Rs 1250 since September 2023.

Launched by the state government in May 2023, this scheme provides assistance to married women aged between 21 and 60. Initially set at Rs 1,000 per month, the assistance was later increased to Rs 1,250 per month.

Earlier this week, the Maharashtra government announced a significant reduction in the budget for its Ladki Bahin scheme, slashing funding by Rs 10,000 crore for the financial year 2025-26. Initially launched to aid married women aged 21 to 60, the scheme previously offered financial assistance of Rs 1,000 per month, which was later increased to Rs 1,250. The state's estimated allocation for this programme now stands at Rs 36,000 crore.

This budgetary decision comes as Maharashtra faces its most substantial debt projection in history, amounting to an estimated Rs 9.3 lakh crore. Additionally, the state is grappling with a significant revenue deficit, projected to reach Rs 45,891 crore for the same fiscal year. The financial constraints have compelled the government to refrain from introducing any new major welfare initiatives. Promises from the election manifesto, such as raising the stipend for the Mukhya Mantri Majhi Ladki Bahin Yojana from Rs 1,500 to Rs 2,100 per month and instituting a farm loan waiver, have not been approved.

The impact of these women's welfare cannot be understated. The Ladki Bahin scheme has been a critical component of the state's social support network, offering economic assistance to many women. With reduced funding, the reach and effectiveness of this programme may be adversely affected, potentially limiting the resources available to beneficiaries.