In a notable shift, the Union Ministry of Rural Development has proposed a significant increase in funding for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), despite the government’s general stance of downplaying the scheme’s prominence.
According to a report by The Indian Express, the ministry has sought an allocation of Rs 5.23 lakh crore for the next five years, covering the period until 2029-30.
The proposal, submitted on May 15 to the Expenditure Finance Committee (EFC) under the Ministry of Finance, marks a 12% increase over the Rs 4.68 lakh crore disbursed under the scheme between 2020-21 and 2024-25. The EFC appraises major government programmes and projects, and its approval is considered a key step in finalising budgetary outlays.
For the financial year 2025-26, the Modi government has allocated Rs 86,000 crore to the rural employment programme, maintaining the same level of spending recorded in the revised estimates for 2024-25.
This figure mirrors the allocation presented in the Union Budget of July 2024, following the National Democratic Alliance’s return to power.
The report highlights that MGNREGS spending had reached its highest point in 2020-21 — the first full year following the COVID-19 outbreak — with Rs 1.09 lakh crore released and a record 7.55 crore rural households benefiting from the scheme.
Government sources quoted by the newspaper clarified that the current appraisal is part of a broader review process aimed at aligning schemes with the next Finance Commission cycle. They added that since MGNREGS is a legislated entitlement, the EFC’s role is largely procedural, and the proposed outlay could still undergo revisions.
The increased funding proposal comes amid ongoing political and policy debates over the future of the UPA-era scheme, which continues to serve as a crucial safety net for millions in rural India.
According to a report by The Indian Express, the ministry has sought an allocation of Rs 5.23 lakh crore for the next five years, covering the period until 2029-30.
The proposal, submitted on May 15 to the Expenditure Finance Committee (EFC) under the Ministry of Finance, marks a 12% increase over the Rs 4.68 lakh crore disbursed under the scheme between 2020-21 and 2024-25. The EFC appraises major government programmes and projects, and its approval is considered a key step in finalising budgetary outlays.
For the financial year 2025-26, the Modi government has allocated Rs 86,000 crore to the rural employment programme, maintaining the same level of spending recorded in the revised estimates for 2024-25.
This figure mirrors the allocation presented in the Union Budget of July 2024, following the National Democratic Alliance’s return to power.
The report highlights that MGNREGS spending had reached its highest point in 2020-21 — the first full year following the COVID-19 outbreak — with Rs 1.09 lakh crore released and a record 7.55 crore rural households benefiting from the scheme.
Government sources quoted by the newspaper clarified that the current appraisal is part of a broader review process aimed at aligning schemes with the next Finance Commission cycle. They added that since MGNREGS is a legislated entitlement, the EFC’s role is largely procedural, and the proposed outlay could still undergo revisions.
The increased funding proposal comes amid ongoing political and policy debates over the future of the UPA-era scheme, which continues to serve as a crucial safety net for millions in rural India.
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