The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a pivotal rural employment initiative, has encountered a severe funding shortfall just six months into the financial year 2023-24. Official statistics released by the Ministry of Rural Development (MoRD) indicate a deficit of Rs 6,146.93 crore. The allocated budget of Rs 60,000 crore for the current fiscal year fell short by 18 percent compared to the initial estimates and 33 percent lower than the revised figures of the previous financial year.
According to a Hindu report, the MoRD urgently approached the Finance Ministry on September 15, seeking a supplementary budget of Rs 23,000 crore to sustain the MGNREGS operations. However, as of now, there has been no response from the Finance Ministry regarding this request, the report added.
MoRD, in a statement issued recently, emphasised the demand-driven nature of the MGNREGA program, assuring that fund releases to States and Union Territories are continuous and aligned with the demand for employment opportunities. The ministry clarified that the allocation process considers factors such as labour budget, opening balance and pending liabilities from previous years, ensuring an equitable distribution of funds.
While the Ministry confirmed the release of Rs 56,105.69 crore (93.5 percent of the sanctioned amount) to the states until October 4, 2023, a significant gap remains, posing a threat to the smooth implementation of the programme. Notably, the ministry’s report available online indicates a deficit, highlighting the urgent need for additional funding to bridge this gap.
Amid this financial crisis, the Rural Development Ministry emphasised that there is no fund shortage for the MGNREGA scheme at the national level, according to the report by The Economic Times. However, it pointed out a specific case concerning West Bengal. Funds for West Bengal, the ministry stated, had been halted since March 9, 2022, due to non-compliance with central directives, as stipulated in Section 27 of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. This revelation comes amidst protests by West Bengal’s ruling party, Trinamool Congress (TMC), demanding the release of pending MGNREGA dues.
This scheme ensures at least 100 days of paid work for rural families. MNREGA Sangharsh Morcha activists in a press statement released on Wednesday claimed that the government's decision to reduce the budget allocation from Rs 73,000 crore last year to Rs 60,000 crore this year has led to this situation, The Print reported. They pointed out that despite the rural unemployment rate reaching a two-year high of 8.73 percent, the government has implemented budget cuts, delayed wage payments and introduced complex technologies like the Aadhaar-based payment system, which they criticize as detrimental to the program, the report added.
(Edited by : Sudarsanan Mani)
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