The Crossbill News Desk
Senior Congress leader Jairam Ramesh on Wednesday (June 11) launched a sharp critique of the Union government following a report by The Indian Express that exposed a significant policy change in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA).
The report revealed that, for the first time, the Centre has capped MGNREGA expenditure at 60% of its total annual budget for the first half of the 2025–26 financial year.
Calling it a part of a “three-step formula” to systematically undermine the demand-driven rural employment scheme, Ramesh accused the government of deliberately weakening a programme that serves as a critical safety net for millions of rural households.
In a post on X, Ramesh wrote:
“How to kill MGNREGA in three easy steps -
Step I: Starve MGNREGA of funds for a decade, resulting in stagnant wages and a massive rise in pending dues - amounting to Rs. 21,000 crores as of the beginning of this financial year
Step II: Introduce the Finance Ministry’s Monthly/Quarterly Expenditure Plan, restricting MGNREGA expenditure in the first six months of the financial year to 60% of the annual budget
Step III: Effectively stop providing work to MGNREGA beneficiaries due to budget shortfall after payment of pending dues
Step I and II are in motion. Step III is coming soon.”
Also read: Centre Imposes First-Ever Spending Cap on MGNREGS: 60% for H1 of FY25-26
Step I: Starve MGNREGA of funds for a decade, resulting in stagnant wages and a massive rise in pending dues - amounting to Rs. 21,000 crores as of the beginning of this financial year
Step II: Introduce the Finance Ministry’s Monthly/Quarterly Expenditure Plan, restricting MGNREGA expenditure in the first six months of the financial year to 60% of the annual budget
Step III: Effectively stop providing work to MGNREGA beneficiaries due to budget shortfall after payment of pending dues
Step I and II are in motion. Step III is coming soon.”
Also read: Centre Imposes First-Ever Spending Cap on MGNREGS: 60% for H1 of FY25-26
In response to these developments, Ramesh put forward a set of corrective measures, stating:
“What needs to be done instead is -
1. MGNREGA wages must rise to reach Rs 400 per day
2. The Aadhar Based Payment Bridge Systems (ABPS) must not be made mandatory
3. Wages must be paid within the statutory period of 15 days and any delay in payment must be compensated.”
The Indian Express report also highlighted that the Ministry of Rural Development, which had previously resisted being brought under the MEP/QEP framework due to the scheme’s demand-based structure, ultimately complied with submitting a quarterly spending plan.
1. MGNREGA wages must rise to reach Rs 400 per day
2. The Aadhar Based Payment Bridge Systems (ABPS) must not be made mandatory
3. Wages must be paid within the statutory period of 15 days and any delay in payment must be compensated.”
How to kill MGNREGA in three easy steps -
— Jairam Ramesh (@Jairam_Ramesh) June 11, 2025
Step I: Starve MGNREGA of funds for a decade, resulting in stagnant wages and a massive rise in pending dues - amounting to Rs. 21,000 crores as of the beginning of this financial year
Step II: Introduce the Finance Ministry’s… pic.twitter.com/DPdqXb3BnM
The Indian Express report also highlighted that the Ministry of Rural Development, which had previously resisted being brought under the MEP/QEP framework due to the scheme’s demand-based structure, ultimately complied with submitting a quarterly spending plan.
However, its request to exceed the 60% spending limit in the first half of the year was denied.
Experts warn that the decision could severely hamper work allocations and delay payments, particularly during lean agricultural periods when demand for MGNREGA jobs peaks.
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