Plea in M.P. High Court seeks closure of Ladli Behna scheme over its financial cost; notice issued to government

Published 2026-09-22 · Updated 2026-09-22 · 3 min · 587 words

UPSC CSE Context

Why in News

Madhya Pradesh High Court issued notices on a plea seeking closure of the Ladli Behna Scheme over its financial cost and alleged freebie nature.

Syllabus Connection

Governance, welfare schemes, fiscal federalism, judicial review of policy.

Exam Relevance

Relevant for UPSC CSE Mains on welfare versus freebies, fiscal prudence, and judicial intervention in policy matters.

Core Issue

PIL challenges Ladli Behna Scheme as fiscally unsustainable election freebie.

Key Development

High Court seeks government response on scheme's financial liability and lack of empowerment evidence.

Stakeholders

• State Government of Madhya Pradesh
• Women and Child Development Department
• Finance Department
• Sudha Dubey (petitioner)
• Beneficiary women

Static Knowledge

High-Value Background

• Direct Benefit Transfer schemes are often criticized for creating dependency without sustainable livelihood creation.
• Article 282 allows Union or State to make grants for public purpose, but fiscal limits apply.

Concepts in Context

• Freebie refers to a scheme with no clear economic rationale, often announced before elections.
• Fiscal prudence requires balancing welfare spending with debt sustainability.

Institutions and Mechanisms

• High Court can examine whether a scheme violates constitutional principles or fiscal responsibility laws.

Dynamic Analysis

Governance

• Scheme lacks evidence of creating lasting economic empowerment, raising questions about its design.
• Cash transfers without skill development may not address structural unemployment among women.
• Government has not conducted independent assessment of scheme outcomes, undermining accountability.
• Halt in fresh registrations suggests possible fiscal stress or political motives.

Economy

• Annual cost of over ₹22,000 crore strains state finances, especially with high debt and interest liabilities.
• Funds diverted to cash transfers may reduce spending on education, health, and infrastructure.
• Market borrowings to fund recurring revenue expenditure violate fiscal prudence norms.
• Long-term sustainability of such schemes is questionable without corresponding revenue growth.

Constitutional/Legal

• Judicial review of welfare schemes tests the boundary between policy and constitutional validity.
• Petition invokes public interest to challenge use of taxpayer money for electoral gains.
• Court's intervention could set precedent for scrutiny of similar schemes across states.
• Article 14 and 21 arguments may be raised regarding equitable resource allocation.

Society

• Scheme may create dependency rather than empowerment, affecting women's agency.
• Beneficiary numbers dropped from 1.31 crore to 1.25 crore, indicating possible exclusion errors.
• Cash assistance of ₹1,500 is insufficient for household needs, raising questions about its impact.
• Political parties use such schemes to mobilize women voters, influencing electoral outcomes.

Prelims Takeaways

• Ladli Behna Yojana launched in March 2023 by Shivraj Singh Chouhan, initially ₹1,000 per month.
• Budgetary allocation for FY2026-27 is ₹23,882 crore.

Mains Value Addition

Arguments

• Welfare schemes must be evidence-based and linked to measurable empowerment outcomes.
• Fiscal responsibility requires prioritizing capital expenditure over populist cash transfers.
• Judicial oversight can ensure accountability but risks overstepping into policy domain.
• Direct cash transfers may be necessary but insufficient for structural poverty alleviation.

Examples

• Ladli Behna Scheme's cost exceeds ₹22,000 crore/year, comparable to state's education budget.

Data Points

• Beneficiaries: 1.31 crore in 2023, reduced to 1.25 crore in latest instalment.
• 40th instalment disbursed ₹1,835 crore.

Counterpoints

• Cash transfers provide immediate relief to women in poverty, enhancing their bargaining power.
• Scheme may have contributed to BJP's electoral victory, indicating popular support.
• Judicial intervention in welfare policy may undermine democratic mandate.

Way Forward

• Conduct independent impact assessment of the scheme's empowerment outcomes.
• Link cash transfers to skill development and employment generation programs.
• Ensure fiscal transparency by publishing scheme-wise expenditure and debt implications.
• Establish a social audit mechanism for large welfare schemes.
• Consider conditional cash transfers tied to education, health, or livelihood activities.

Primary/reference source: National News