NEW DELHI: The Finance Ministry is likely to approve a 12% hike in the outlay of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for five years, as demanded by the Ministry of Rural Development, sources said.
Recent media reports have said that the MoRD has sought an outlay of Rs 5.23 lakh crore for MGNREGS for five years until 2029-30 in its proposal to the Expenditure Finance Committee (EFC). EFC is responsible for appraising and approving schemes with significant budgetary implications.
Sources in the Finance Ministry said that the ministry may give a go ahead to the proposal and it will be finalised after Cabinet approval. In the previous five financial years from 2020-21 to 2024-25, the central fund amounted Rs 4.68 lakh crore for MGNREGS.
For the 2024-25 financial year, the budget allocation for the MGNREGA was Rs 86,000 crore, same as what was spent on the scheme as per the revised estimate of 2024-2025.
The findings of a recent report by LibTech India, showed that employment fell by 7.1% in 2024–25, despite an 8.6% rise in registered households, under the scheme. It showed only 7% households availed the promised 100 days of work under the MGNREGA scheme.
It also pointed out that average workdays dropped by 4.3%, and 100-day completion households fell by 11.9%. While states with the sharpest employment drops included Odisha (34.8%), Tamil Nadu (25.1%), and Rajasthan (15.9%), Maharashtra (39.7%), Himachal Pradesh (14.8%), and Bihar (13.3%) showed gains.
The report showed, though there was a 8.6% increase in registered households in FY 2024-25, it did not result in improved employment.
The report also suggested that Aadhaar Payment Bridge System (ABPS) ineligible workers are denied work, despite MoRD assurances.
It showed that 27.5% of all workers and 1.5% of active workers still remained ineligible for ABPS, only a slight improvement from the previous year. Maharashtra (63.4%), Gujarat (58.1%), and Jharkhand (38.1%) have the highest proportions of all workers ineligible for ABPS, it said.
Citing the report, Congress general secretary Jairam Ramesh recently said even as coverage of the scheme rises, perhaps due to the ongoing economic slowdown, the average number of days employment per household has fallen, he said in a statement. Ramesh said due to the worsening economic downturn, the budget must make adequate financial provision to realise the vision under MGNREGA.
Govt should ensure adaquate funds: Congress
Hitting out at the Centre, Congress said amid the economic downturn, the budget must make adequate financial provision to realise the vision under MGNREGA. Wages cannot be set by the arbitrary whims of the government, the party said, adding, a Standing Committee must be established to evaluate the need for changes