Nearly 60% of MGNREGS budget already spent in first 5 months of financial year , Pg14

Key Highlights:

• Nearly 60% (₹51,521 crore) of the ₹86,000 crore MGNREGS budget for FY 2025-26 has been spent in the first five months.
• The Finance Ministry has capped spending at 60% of the annual allocation for the first half of the financial year.
• There are 12.15 crore active workers who rely on the scheme to supplement their household income.
• Approximately 38% of the current budget is allocated to cover pending liabilities from FY 2024-25.

Detailed Insights:

• The Ministry of Rural Development has requested a revised allocation from the Finance Ministry due to the rapid expenditure.
• As of April 1, ₹17,259.56 crore was pending as wage liabilities and ₹15,641 crore as material liabilities from FY 2024-25.
• In the corresponding period of FY 2024-25, the expenditure was ₹61,829 crore, resulting in a significant shortfall and no additional funds allocated.
• The capping of funds may impact the scheme's ability to provide rural employment during the remaining months of the financial year.

Key Concepts Involved:

• MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme): A flagship rural employment program providing a legal guarantee for 100 days of wage employment to rural households.
• Fiscal Allocation: The process of earmarking government funds for specific programs or sectors in the Union Budget.
• Wage Liabilities: Pending payments owed to workers under the MGNREGS for completed work.