MGNREGA gets more funds from Modi govt

The UPA-launched MGNREGA got a higher budgetary allocations of Rs 34,699 crore with nearly 12 per cent hike over the current fiscal, a day after Prime Minister Narendra Modi described it as "living proof of the Congress party's failure".
The hike in overall allocation of Rural Development ministry is, however, only around 5.12 per cent.
The ministry has received a budgetary allocation of Rs 71695.08 crore as against Rs 68204.15 crore revised budget last fiscal with a thrust on employment generation, housing, skill development and road connectivity.
The hike from previous allocation of nearly Rs 31,000 crore in the revised budget 2014-15 comes in the backdrop of Modi and many other ministers criticising the flagship rural job scheme launched by the Congress-led UPA government. The Opposition has been accusing the Modi government of trying to wound up the scheme. The initial budget allocation for 2014-15 was Rs 34,000 crore.

Replying to a debate on President's Address in Lok Sabha, Modi had yesterday taken a dig at the opposition over rumours that MGNREGA scheme was being stopped.
"You may say that I do not have wisdom in some areas. But at least I do have some political wisdom. How can I shut down this scheme? .... MGNREGA is a living example of your failures," he had said, taking a dig at Congress.

Asserting that MGNREGA will continue with "honour and dignity", he had said he "will keep beating the drums that you (Congress) formulated for the poor (the scheme) to force them to continue to dig holes in the ground even after 60 years of independence."

During his budget speech, Finance Minister Arun Jaitley today said, "Our government is committed to supporting employment through MGNREGA. We will ensure that no one who is poor is left without employment.
"We will focus on improving the quality and effectiveness of activities under MGNREGA. I have made an initial allocation of Rs 34,699 crore for the programme."
The Finance Minister also said he hoped to garner some additional resources during the year from tax buoyancy. "If I am successful, then over and above the budgetary allocation, I will endeavour to enhance allocations to MGNREGA by Rs 5,000 crore," Jaitley said.

MGNREGA or the Mahatma Gandhi National Rural Employment Guarantee Act promises unskilled manual work to every adult for at least 100 days in rural parts of the country. It was introduced in 2005.