Govt may divert unspent funds allocated for PM-KISAN scheme to MGNREGA

This is to push liquidity into rural hands to kick-start consumption cycle

To push liquidity into rural hands to kick-start the consumption cycle, the government may divert a part of the unspent fund allocated under PM-KISAN scheme for 2019-20 to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Officials said because of the lower number of targeted beneficiaries under PM-KISAN expected this year than anticipated earlier based on the 2015-16 agriculture census, the Centre may end up saving Rs 20,000-25,000 crore in the flagship scheme, out of the budgeted Rs 75,000 crore.

“A part of this may be diverted for MGNREGA,” a senior official said.

Sources said the rural development ministry