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Government

Bengal’s Rs 7,888 Crore PMAY-G Funds Stuck, Awaiting Approval: Rural Development Ministry

This update was shared with the Standing Committee on Rural Development and Panchayati Raj during its assessment of the department’s grant requests for 2025-26.

Bengal’s Rs 7,888 Crore PMAY-G Funds Stuck, Awaiting Approval: Rural Development Ministry

Village dwellers working in a field in Purulia. (Representative image; Courtesy: X/@PARInetwork)

The Ministry of Rural Development has informed a parliamentary panel that the release of Rs 7,888.67 crore to West Bengal under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) for the financial year 2024-25 remains pending with the “competent authority.”

According to a report by The Indian Express, this update was shared with the Standing Committee on Rural Development and Panchayati Raj during its assessment of the department’s grant requests for 2025-26.

The panel had sought explanations for fluctuations in the allocation of rural development schemes, including PMAY-G.

According to the ministry, the initial budgetary allocation for PMAY-G in 2024-25 stood at Rs 54,500.14 crore at the Budget Estimates (BE) stage but was later reduced to Rs 32,426.33 crore at the Revised Estimates (RE) stage, and further slashed to Rs 17,731.96 crore at the Advance Estimates (AE) stage.

The ministry attributed the decline in expenditure to multiple factors, including disruptions caused by the general and assembly elections, delays due to the late release of funds in the previous financial year, and the pending decision on fund disbursement to West Bengal.

It further pointed out that the scheme’s extension in the second quarter of the financial year, aimed at constructing an additional two crore houses, led to delays in allocating funds to states and union territories.

The parliamentary committee strongly recommended that West Bengal receive its rightful dues for all eligible years, barring the period currently under legal dispute.

The report highlighted that no central funds had been allocated to the state under MGNREGA or other rural development schemes for the financial years 2022-23, 2023-24, and the ongoing fiscal year.

The panel noted that the prolonged suspension of funds had triggered severe economic distress, including a sharp rise in distress migration and disruptions to rural development projects, significantly impacting livelihoods.

The committee, headed by Congress MP Saptagiri Sankar Ulaka, urged the Centre to release the pending payments immediately to prevent further hardship for rural populations and ensure the continuation of development initiatives.

The central government has withheld MGNREGA funds from West Bengal for the past three years, citing non-compliance with directives under Section 27 of the MGNREGA Act, 2005.

The suspension, which took effect on March 9, 2022, has led to a complete halt in work under the scheme in the state. Additionally, West Bengal has been denied funds under PMAY-G, exacerbating financial challenges in rural areas.

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