Madhya Pradesh is set to increase the monthly allowance for women under the Mukhyamantri Ladli Behna Yojana, even as concerns mount over the state's increasing debt burden. The payout is slated to rise by ₹250 from the upcoming Diwali festival, taking the monthly allowance to ₹1,500. This decision arrives amidst opposition criticism and heightened scrutiny of the state's financial management.
Chief Minister Mohan Yadav announced the increase on June 19, 2025, during a virtual address. He reaffirmed the government's commitment to gradually increasing the allowance to ₹3,000 by 2028, which is an election year. The Ladli Behna Yojana currently supports approximately 1.27 crore eligible women, aged between 21 and 60 years, with an annual family income of less than ₹2.5 lakh.
The scheme, initially launched in March 2023 by the previous Chief Minister Shivraj Singh Chouhan, started with a monthly allowance of ₹1,000. This was later increased to ₹1,250 per month in October 2023, just before the state assembly elections. The BJP had promised in its manifesto to raise the allowance gradually to ₹3,000 per month.
However, the increase has drawn criticism from the opposition, primarily the Congress party. Madhya Pradesh Congress president Jitu Patwari has stated that his party would approach the court to get the amount increased to ₹3,000 per month immediately, in accordance with the BJP's initial promise. He accused the government of "committing a theft of about ₹1,800 per month" from each beneficiary. Patwari also raised concerns about the "exclusion" of eligible beneficiaries and the lack of registration for new ones.
CM Yadav has defended the phased approach, stating that the manifesto promise is meant to be fulfilled over five years. He also rebuffed the Congress's accusations, emphasizing the government's dedication to women's empowerment. "This is not a theft but our commitment towards them (the women)," he asserted.
The Ladli Behna Yojana has disbursed 25 installments, totaling over ₹28,000 crore. Besides the monthly allowance, the state government has also announced a ₹250 festive bonus for Raksha Bandhan, bringing the total disbursement for that month to ₹1,500. The scheme is credited with improving women's decision-making power within households and contributing to better nutrition and education outcomes for children.
Despite the benefits of the scheme, concerns persist over Madhya Pradesh's financial health. The state government is set to borrow an additional ₹5,000 crore, raising alarms about its increasing debt. As of March 31, 2025, Madhya Pradesh's debt had already reached ₹4.31 lakh crore. With the new borrowing, the state's total domestic debt will climb to ₹4.36 lakh crore, exceeding the annual budget for 2025-26, which stands at ₹4.21 lakh crore.
The Congress party has criticized the ruling BJP government for "reckless and wasteful" financial management. They point out that the state is seeking to raise a significant loan within a single financial year, indicating a "crumbling fiscal health." The opposition also cites examples of extravagant spending, such as the purchase of an aircraft and luxury vehicles for ministers, while the state struggles to pay over ₹29,000 crore annually in interest alone.
While Finance Department officials maintain that the borrowing is within regulated limits and aimed at funding infrastructure and development initiatives, economic analysts note this is part of a growing trend. The fiscal deficit for 2025-26 is targeted at 4.7% of GSDP (₹78,900 crore), higher than the revised estimates for 2024-25 (4.2% of GSDP).
The state's debt-to-GSDP ratio, while lower than that of a median state, is projected to remain elevated. Concerns about the long-term sustainability of the state's finances persist.
The Madhya Pradesh government has allocated ₹18,669 crore towards the Mukhyamantri Ladli Behna Yojana in 2025-26, which is 6.4% of the estimated revenue receipts. While the scheme remains a key focus, its financial implications and the state's increasing debt continue to be debated.
