Lok Sabha Question No. 2124 (UNSTARRED), answered on 2022-12-20
Subject: Reduction in Labour Budget under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Shriniwas Dadasaheb Patil

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK  SABHA

## UNSTARRED QUESTION NO. 2124 ANSWERED ON 20/12/2022

## REDUCTION IN LABOUR BUDGET UNDER MGNREGS

## 2124.   SHRI SHRINIWAS PATIL:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the Government has reduced in labour budget in format of man-days than the previous year under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS);
- (b) if so, the reasons for significant reduction in labour budget allocation for MGNREGS;
- (c) the quantum of pending payments towards material costs under MGNREGS works specifically in the State of Maharashtra;
- (d) the details of arrears of wage payments to beneficiaries of MGNREGS in the State as on date; and
- (e) whether wages being paid to beneficiaries of MGNREGS are at par with minimum wages for corresponding works?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SADHVI NIRANJAN JYOTI)

(a)&(b):        Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme  (Mahatma Gandhi  NREGS)  is  a  demand  driven  wage  employment  Scheme  which  provides  for  the enhancement  of  livelihood  security  of  the  households  in  rural  areas  of  the  country  by providing at least one hundred days of guaranteed wage employment in every financial year to  every  household  whose  adult  members  volunteer  to  do  unskilled  manual  work. It provides livelihood security, i.e. fall back options for livelihood for the rural households, when no better employment opportunity is available.

In  the  current  financial  year  2022-23  (as  on  15.12.2022),  the  'agreed  to'  Labour Budget  (in  person-days)  under  Mahatma  Gandhi  NREGS  is  235.16  crore.  This  Labour Budget  is  an  indicative  number  for  better  planning  so  that  work  can  be  provided  against demand on time. However, the State may always come up with a proposal for the revision of the Labour Budget, at any point of time of the financial year, if the performance of the State exceeds the "agreed to" Labour Budget.

- (c):  As per NREGASoft of the Mahatma Gandhi NREGS, as on 15.12.2022 a central share liability towards material for the State of Maharashtra is Rs. 200 crore.
- (d):    The funds are released under Mahatma Gandhi NREGS based on the provision of the Act and guidelines. As per guidelines, the first installment of the first tranche is released in the first half of April after adjusting unspent balance available with the States and considering the pending liabilities, if any.
- (e):      As per Section 6(1) of Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), the Central Government may by notification specify the wage

rate for its beneficiaries. Accordingly, the Ministry of Rural Development notifies Mahatma Gandhi NREGA wage rate every financial year for States/UTs. To compensate the Mahatma Gandhi  NREGA workers against inflation,  the  Ministry  of  Rural  Development  revises  the wage rate  every  financial  year  based  on  change  in  Consumer  Price  Index  for  Agricultural Labour (CPI-AL). The wage rate is made applicable from 1st April of each financial year. However  each  State/UT  can  provide  wage  over  and  above  the  wage  rate  notified  by  the Central Government.

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