Rural Development Ministry Seeks 12% Hike in MGNREGS Outlay: Report
The Wire Staff
New Delhi: Despite the Union government's consistent efforts to underplay the primacy of the Mahatma Gandhi National Rural Employment Guarantee Scheme, a report by Indian Express finds that the Ministry of Rural Development has sought an increased outlay – of Rs 5.23 lakh crore – for the scheme for five years until 2029-30.
The report makes public findings from the rural development ministry's May 15 proposal to the Expenditure Finance Committee, that functions under the finance ministry and appraises all government schemes and projects.
The report says that the outlay for five years till 2029-2030 is nearly 12% higher than the Union government's release of Rs 4.68 lakh crore for MGNREGS during the previous five financial years, from 2020-2021 to 2024-2025.
In the Union Budget 2025, the Narendra Modi government allocated Rs 86,000 crore to the United Progressive Alliance-era scheme – the same amount as what was spent on the scheme as per the Revised Estimate of 2024-2025. Rs 86,000 crore is also the exact amount that was promised in the Union Budget of 2024-25, presented in July, 2024, after the National Democratic Government came back to power.
The Wire has reported earlier how in an indication of fresh economic strain in rural India, demand for unskilled work under the MGNREGS has seen an increase in April and May this year, according to the data from the same rural development ministry. As many as 20.12 million rural households were among those who sought employment under the scheme in April. The figure slightly increased to 20.37 million in May, till the 18th of the month.
The Express report notes that release of funds under the scheme had peaked at Rs 1,09,810 crore in 2020-21, the first full year after COVID-19 outbreak. A record 7.55 crore rural families availed themselves of the scheme.
The report also quoted sources in the government as having said that the EFC appraisal and approval is part of government's exercise to evaluate and approve its schemes for the next Finance Commission cycle. The MGNREGS is backed by law and therefore the EFC approval is "just a formality," the report said. The ministry's outlay is also subject to change, sources told the paper.
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