Demand for MGNREGS work returns in Dec; 80% of FY21 funds already spent

Around 26.34 million people demanded work under MGNREGA in December, which was 113.13 per cent more than the same period last year, and around 16 per cent more than November 2020. This reversed the trend of falling work demand, seen since October this year, due to seasonal factors such as casual workers returning from their farm lands.

The reversal in demand also reflects the growing need for further pushing the programme, which has seen record allocations and spending this year in light of Covid-19. Till December end, the MGNREGA website showed that around 80 per cent of the budget for FY21, worth Rs 101,500 crore, has already been spent, while demand continues unabated, leading to a gap between funds available and funds already spent — of around Rs 5,700 crore as of January 1. Several states show a negative balance.

Till December, around 293 crore Persondays of work have been provided, while the approved labour budget is for 333.09 crore Persondays in the fiscal. The following charts capture the current state of the scheme.