Congress slams government for stagnant MGNREGS budget, warns of worsening rural distress

The government has allocated Rs 86,000 crore for the flagship rural employment scheme in 2024-25, the same as last year.
The Congress on Sunday criticised the government for keeping the budget for the MGNREGS stagnant, arguing that this neglect exposes its indifference towards rural livelihoods.
The Congress on Sunday criticised the government for keeping the budget for the MGNREGS stagnant, arguing that this neglect exposes its indifference towards rural livelihoods.(Express illustration)
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NEW DELHI: The Congress on Sunday criticised the government for keeping the budget for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) stagnant, arguing that this neglect exposes its indifference towards rural livelihoods.

The government has allocated Rs 86,000 crore for the flagship rural employment scheme in 2024-25, the same as last year. However, in 2023-24, the initial allocation was Rs 60,000 crore, but additional funds were later provided, bringing the actual expenditure to Rs 89,153.71 crore, according to the Budget document. No additional allocations have been made for 2024-25.

In a post on X, Congress general secretary in-charge of communications, Jairam Ramesh, said that despite rising rural distress, the government has effectively reduced MGNREGS funding in real terms.

"To add insult to injury, estimates suggest that about 20 per cent of the budget is paid towards clearing dues from previous years," Ramesh said.

He argued that this reduces the reach of MGNREGS, leaving drought-affected and poor rural workers stranded. Additionally, he pointed out that the budget constraints preclude any wage increases for workers under the scheme.

"Even in this ongoing financial year, the minimum average notified wage rate was increased by only 7 per cent. This is at a time when Consumer Price Index (CPI) inflation is estimated to be 5 per cent. MGNREGA is therefore ground zero for the national crisis of wage stagnation," he said.

The MGNREGS guarantees 100 days of wage employment per financial year to at least one adult member of every rural household willing to undertake unskilled manual work. At least one-third of jobs under the scheme are reserved for women.

During the COVID-19 pandemic year of 2020-21, MGNREGS played a crucial role in employing rural workers amid widespread reverse migration due to lockdowns, with the government spending Rs 1,11,169 crore on the scheme.

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