Highest budget allocation of Rs 86,000 cr made for rural jobs scheme in 2024-25

For the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) a budget allocation of Rs 86,000 crore has been made at the Budget Estimate (BE) stage for 2024-25, which is the highest ever allocation at the BE stage since the scheme’s inception, the Lok Sabha was informed on Tuesday.

Minister of Rural Development Shivraj Singh Chouhan, replying to a question from T.R. Baalu, said the BE allocation under the scheme was Rs 60,000 crore in 2023-24, Rs 73,000 crore in 2022-23, Rs 73,000 crore in 2021-22, Rs 61,500 crore in 2020-21 and Rs 60,000 crore in 2019-20.

He said, in a written reply, the Revised Estimate for the scheme was Rs 86,000 crore in 2023-24, Rs 89,400 crore in 2022-23, Rs 98,000 crore in 2021-22, Rs 1,11,500 crore in 2020-21 and Rs 71,001.81 crore in 2019-20.

Responding to a query on claims of states for release of funds pending up to March 2024, the Minister said, “There is no pending liability for the wage component under Mahatma Gandhi NREGS for the financial year 2023-24.”

“As per NREGASoft, an amount of Rs 16,300 crore was pending liability for wage, material and Admin component for the financial year 2023-24, which has already been released in the first quarter of FY 2024-25,” Chouhan said.

Mahatma Gandhi NREGS is a demand-driven wage employment scheme. Under the scheme, States/UTs furnish fund release proposals to the Government of India. The Ministry releases funds periodically in two tranches with each tranche consisting of one or more instalments, keeping in view the “Agreed to Labour Budget”, demand for works, opening balance, the pace of utilisation of funds, pending liabilities, overall performance and subject to submission of relevant documents by the States/UTs.

As per the provisions of the Act, States/UTs send the proposal of the annual action plan after following due process, to the Central government. An Empowered Committee under the Chairpersonship of the Secretary (Rural Development) decides the projected Labour Budget in consultation with the State Government for the new financial year, the Minister said.

This “Agreed to Labour Budget” is an indicative number for better planning so that work can be provided against demand on time. During the course of the year, the “Agreed to Labour Budget” is revised depending upon the demand for employment by enrolled households, the Minister said.

(With inputs from IANS)