Maharashtra’s Welfare Push: The 'Majhi Ladki Bahin' Scheme and Fiscal Sustainability

However, the scheme has sparked a robust debate regarding fiscal federalism and sustainability. Critics point out that the massive financial outlay required for such large-scale DBT programs often comes at the cost of capital expenditure. In a federal structure where states are already grappling with high debt-to-GSDP ratios and limited revenue-raising powers post-GST, such measures can strain the fiscal deficit. The challenge for the state lies in adhering to the Fiscal Responsibility and Budget Management (FRBM) targets while fulfilling social welfare mandates. Furthermore, this development highlights the 'competitive federalism' seen among Indian states, where welfare models are rapidly replicated across borders. While this promotes social security, it necessitates a re-evaluation of how states prioritize long-term investments in infrastructure, health, and education versus immediate cash assistance. For a state like Maharashtra, balancing its status as an industrial powerhouse with its welfare obligations remains a complex policy maneuver. UPSC Relevance: This topic is highly relevant for GS Paper II (Welfare Schemes and Federalism) and GS Paper III (Government Budgeting). It provides a contemporary case study for answers regarding the "freebies vs. welfare" debate, the challenges of fiscal consolidation at the state level, and the evolving nature of the Indian social contract.