Funds released for MGNREGS see decline despite higher Budget allocation

The overall funds released under MGNREGS have gone down over the last five years, even as the allocations in the Budget have gone up, information given by the government in the Rajya Sabha showed.

According to a written reply by Minister of State for Rural Development Kamlesh Paswan to a question by Leader of Opposition Mallikarjun Kharge, the year of the Covid lockdown 2020-21 saw many migrant workers return to their native villages and ₹1,11,170.86 crore was released under the rural job scheme, the highest in the five-year period.

At the Budget Estimate stage at the beginning of the financial year, ₹61,500 crore was allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

In 2021-22, ₹98,467.85 crore was released under the scheme, against a Budget Estimate of ₹73,000 crore, while in 2022-23, ₹90,810.99 crore was released, well over the estimate of ₹73,000 crore when the Union Budget was announced.

In 2023-24, ₹89,268.30 crore was released under the scheme, against a Budget Estimate of ₹60,000 crore.

In 2024-25,₹85,838.76 crore was released under the scheme, which was less than the Budget Estimate of ₹86,000 crore at the start of the fiscal year, a first in five years.

The funds released for the MGNREGS have declined every year since it peaked in 2020-21, as per data provided by the minister.

Paswan, in his reply, said that in the financial year 2025-26 (as on July 22), 99.79 per cent of the eligible rural households have been offered employment.

The minister also stressed that the allocation of ₹86,000 crore for the financial year 2024-25 was the "highest ever allocation for the scheme at the Budget Estimate (BE) stage since inception".

"In the financial year 2025-26, the government has retained this allocation at ₹86,000 crore, ensuring continued support for the scheme," he said.

"The Government of India is committed to strengthening and supporting Mahatma Gandhi NREGS to ensure livelihood security for rural households through sustainable employment opportunities," Paswan added.

As of July 21 this year, 3.83 crore households availed employment and 106.77 crore person-days have been generated under the scheme, he said in a written reply to another question.

In another written reply, Rural Development Minister Shivraj Singh Chouhan said that ₹44,479.79 crore has already been released to states/UTs this financial year, out of which ₹36,616.99 crore is for payment of wages.

He said all pending liabilities of wages for FY 2024-25 have already been released at the beginning of FY 2025-26.