The finance ministry may allocate an additional Rs 28,000 crore to the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS) scheme for 2023-24 (FY24), The Economic Times (ET) reported on Monday, citing people aware of the matter. Originally, the Centre had allocated Rs 60,000 crore for the scheme in the Budget 2023.
According to the report, 95 per cent of the FY24 budgetary allocation has already been released to meet the increased demand. The discussions regarding this were undertaken in the pre-budget meetings currently going on. The meetings will continue till November 14.
The actual expenditure of MGNREGS has been historically higher than the budgeted expenditure, especially since the Covid-19 pandemic. In FY21, the allocation was Rs 61,500 crore but the actual expenditure was Rs 1.1 trillion.
In FY22, the actual expenditure was Rs 98,468 crore as compared to the budgeted Rs 73,000 crore. In FY24, the budgetary allocation for the scheme was cut to Rs 60,000 crore.
If cleared, the total outlay of MGNREGS will be at Rs 88,000, nearly around last year's actual expenditure of Rs 89,400 crore.
Earlier, in an interview with news agency PTI, Union Rural Development Minister Giriraj Singh said that additional allocations will be sanctioned for the scheme, and the finance ministry has assured there will be no shortage.
"The MGNREGS is a demand-driven scheme, everyone knows that," he said. "The Union finance ministry has sanctioned additional funds for it."
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This came as the Trinamool Congress (TMC) has been attacking the Centre for the flagship programme not being given sufficient funds.
Earlier this month, TMC leaders staged a protest at Rajghat in New Delhi, alleging that the Centre had deliberately stopped the release of funds.