Mukhyamantri Ladli Behna Yojana: Assessing the Financial Burden and Its Implications for Economic Indicators

This paper takes a close look at the Mukhyamantri Ladli Behna Yojana (MLBY), a key cash transfer program for women in Madhya Pradesh that started back in 2023. I dive into how it's affecting the state's finances and bigger economic picture, drawing from government budgets, RBI reports, and other sources up to early 2026. The costs have climbed from around ?12,000 crore a year at the start to over ?22,000 crore projected for 2026-27, thanks to higher payouts (now ?1,500 monthly) and more beneficiaries (1.27 crore). The analysis shows this is linked to bigger fiscal deficits (hitting 4.1% of GSDP in 2024-25), rising debt (over ?4.6 lakh crore), and less money for things like roads and schools. Sure, it's helped women feel more secure financially, but its election-timed design is putting real pressure on the budget, pulling funds away from growth-boosting investments and slowing long-term GDP. I suggest ways to tweak it—like tighter targeting and tying it to skills training—to keep the good parts without hurting the economy.