MGNREGS Allocation Remains Unchanged at ₹86,000 Crore For FY-26

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been allocated ₹86,000 crore in the 2024-25 budget, the same as the previous year. However, in 2023-24, the initial allocation was ₹60,000 crore, but additional funds were provided, bringing the actual expenditure to ₹89,153.71 crore, as per the Budget document. No additional allocations have been announced for 2024-25.

About MGNREGS

MGNREGS provides guaranteed 100 days of wage employment in a financial year to at least one adult member of every rural household willing to undertake unskilled manual work. The scheme reserves at least one-third of the total jobs for women.

Timely Wage Payment Measures

Under the Mahatma Gandhi National Rural Employment Guarantee Act, beneficiaries are entitled to receive wage payments within 15 days of the closure of the Muster Roll of the work.

The Government of India has issued a detailed Standard Operating Procedure (SOP) to ensure timely wage disbursement. The Ministry, along with State and Union Territory (UT) administrations, has been making continuous efforts to improve wage payment timelines. Steps taken include:

• Upscaling of the National Electronic Fund Management System (Ne-FMS).
• Intensive consultation with State Governments and stakeholders to strategize timely wage payments and verification of pending compensation claims.
• Formulation of SOPs for monitoring payment schedules and disbursing compensation for delays.
• Regular review meetings, including Annual Action Plan finalization, Mid-Term reviews, Labour Budget revisions, and Monthly review meetings, to assess payment status and address wage delay issues.

Pending Wage Liabilities Across States

As of January 27, 2025, pending wage liabilities under MGNREGS across various states and UTs amount to ₹6,433.95 crore. The states with the highest pending liabilities include:

• Tamil Nadu – ₹1,652.45 crore
• Uttar Pradesh – ₹1,214.85 crore
• Bihar – ₹670.01 crore
• Kerala – ₹485.99 crore
• Rajasthan – ₹472.54 crore

Other states with significant outstanding payments include Maharashtra (₹278.61 crore), Madhya Pradesh (₹261.50 crore), Chhattisgarh (₹175.86 crore), and Karnataka (₹140.41 crore). States with relatively lower liabilities include Nagaland (₹3.73 crore), Sikkim (₹3.24 crore), Ladakh (₹2.37 crore), and Puducherry (₹1.09 crore).

The government has reiterated its commitment to ensuring timely payments and has urged states and UTs to expedite the processing of wage disbursements.

However, with no additional allocation beyond the initial ₹86,000 crore, concerns persist over whether funding will be adequate to meet the scheme’s demands in the coming fiscal year.

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