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MGNREGS funds fast drying up as demand surges amid Covid-19 pandemic

Almost 63 per cent of the increased allocation of around Rs 1.01 trillion has been spent in the first five months of 2020-21

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The Central government in its 2020-21 Budget had allocated around Rs 61,500 crore for the scheme. This was almost 13.3 per cent lower than the revised estimate of 2019-20.

Sanjeeb Mukherjee New Delhi
Funds allocated for the Mahatma Gandhi National Rural Employment Generation Scheme (MGNREGS) are fast drying up even as the project continues to attract a sizeable chunk of the rural workforce.

Almost 63 per cent of the increased allocation of around Rs 1.01 trillion has been spent in the first five months of 2020-21.

With more than six months to go for the fiscal year to close, experts said if 100 days’ of employment per year, as mandated by law, was to be provided, this expanded allocation too might be insufficient and exhausted by December or January.

The MGNREGA (Mahatma Gandhi National Rural Employment