The success of any welfare program is intricately tied to the commitment of the government overseeing it. As the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) nears two decades of operation, its longevity under successive governments underscores its necessity and impact. Initially perceived as an obligation rather than a priority under the National Democratic Alliance (NDA), the scheme’s significance became evident during the COVID-19 pandemic, when it provided crucial sustenance to both rural workers and returning migrant laborers. However, recent budgetary allocations suggest an apparent neglect of MGNREGS, with its share in total budgetary expenditure declining from 3.2 per cent in FY21 to 1.78 per cent in FY25. Despite being a demand-driven program, where expenditure typically exceeds initial allocations, no additional funds have been sanctioned this financial year. This has led to delayed wages and suppressed demand, with reports indicating a shortfall of Rs 4,315 crore for wages and an additional Rs 5,715 crore pending for material costs. Further, the implementation hurdles such as Aadhaar-based payment bottlenecks and inflation-adjusted wage inadequacies remain unresolved. The scheme’s essence lies in providing guaranteed employment—a promise that is undermined when funds are artificially restricted. MGNREGS is not merely an income support mechanism; it contributes to village infrastructure, irrigation canals, rural roads, and water conservation projects. By increasing rural disposable income, it also strengthens the local economy. Given that rural poverty remains a pressing challenge, the Union government must rethink its approach. A realistic budgetary allocation, aligned with actual demand, is imperative to maintain the scheme’s integrity. Ensuring timely disbursement of wages and adequate funding is not just an economic necessity but a moral obligation towards India’s rural workforce. A proactive approach by the government will take the country forward.
Government must work for adequate MGNREGS funds
Published Date: 01-02-2025 | 6:22 pm![](https://www.thefinancialworld.com/wp-content/uploads/2025/02/Edit-44-Govt-must-work-for-adequate-MGNREGS-funds-730x430.jpg)