MGNREGA Scheme Faces Fund Crunch (Download PDF)

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MGNREGA scheme has been in news recently due to the shortage of funds it is facing. In the budget 2019 - 20, Rs. 60,000 crores were allocated for the scheme. 96 % of the allocated money has already been spent.

  • 15 states have been identified where dues are pending.

  • Rajasthan has the highest negative net balance followed by Uttar Pradesh.

MNREGA Scheme-Surplus Demand

MNREGA Scheme-Surplus Demand

MNREGA Scheme-Surplus Demand

Overview

  • The reason of fund shortage is primarily due to increased demand of work under MGNREGA.

  • The spike in demand is due to distressed rural and agrarian economy and drought conditions this year.

  • To avoid paying interest on delayed wages many states are being alleged to be suppressing demand of work.

  • Generally, January, February and March are the months of high demand of work in MGNREGA since there is little to no agricultural activity in these months.

  • The scheme is already facing fund crunch and will enter net year with accumulated liabilities.

MNREGA

  • MGNREGA is an employment guarantee scheme to enhance livelihood opportunity of people living in rural areas

  • The scheme was enacted by legislation on September 7,2005.

  • It guarantees 100 days of unskilled work to one adult member of each family.

  • Provision of Unemployment allowance is also there if a person does not get work within 14 days of demanding work but the scheme has been touted as the key to kickstart the economy by putting money in the hands of rural people.

- Published/Last Modified on: May 5, 2020

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