Centre mulls providing more funding to MNREGA, say govt sources

The central government is considering providing more funding for the Mahatma Gandhi National Rural Employment Guarantee (MNREGA) scheme during the current year as demand for rural work under the flagship scheme has risen.

Sources in the Ministry of Finance said the annual expenditure for the current fiscal year ending March 31, 2024 may rise as much as 30 per cent over the initial budgetary allocation of Rs 60,000 crore.

Official data reveals that expenditure has reached Rs 71,741 crore so far. In budget estimates for the current fiscal, the government had initially allocated around Rs 60,000 crore for the MNREGA scheme. Despite a recent additional allocation, the rising demand for rural work may prompt the government to release additional funds.

The Centre is of the opinion the scheme needs further revamp in order to make sure the scheme is not being misused. “It is not an employment generation sponsored program, but a demand driven scheme for people in need,” the official added.

To address concerns and prevent leakage, the government is exploring various solutions, including expanding Aadhar-based facial authentication which is already underway in states. The government is also encouraging states to take more responsibility for proper implementation of the scheme.

A total of 69.8 million individuals have gotten work under the scheme this fiscal, with the highest person days of work recorded in states like Rajasthan, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh until November 4 this year.

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