Lok Sabha Question No. 3220 (UNSTARRED), answered on 2022-03-22
Subject: Reduced Allocation under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Nusrat Jahan Ruhi

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

## LOK  SABHA UNSTARRED QUESTION NO. 3220

ANSWERED ON 22/03/2022

## REDUCED ALLOCATION UNDER MGNREGS

## 3220.   SHRIMATI NUSRAT JAHAN RUHI:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether it is a fact that the Government has reduced the allocated expenditure in the Mahatma Gandhi National  Rural  Employment  Guarantee  Scheme  (MGNREGS)  by 25.2 per cent;
- (b) if so, the details thereof along with the amount of reduced and allocated expenditure separately;
- (c) whether it is a fact that unemployment in rural sector has increased massively during the last two years due to Covid situation; and
- (d) if  so,  the  details  thereof  along  with  the  likely  impact  of  this  decision  in  rural employment sector?

## ANSWER

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

(a)  &  (b)    Under  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme (Mahatma Gandhi NREGS), States/UTs submit funds release proposals to the Government of India.  Fund  release  to  the  States/UTs  is  a  continuous  process  and  Central  Government  is committed to making funds available to States/UTs for the implementation of the Scheme. The Ministry release funds periodically in two tranches with each tranche consisting of one or more  installments,  keeping  in  view  the  'agreed  to'  Labour  Budget,  demand  for  works, opening  balance,  pace  of  utilization  of  funds,  pending  liabilities,  overall  performance  and subject to  submission of relevant documents by the State/UTs.

The  Central  Government  had  enhanced  the  financial  allocation  under  Mahatma  Gandhi NREGS for previous financial year 2020-21 from Rs. 61,500 crore at Budget Estimate (BE) stage to Rs.1,11,500 crore at Revised Estimate (RE) stage.

In the current financial year 2021-22, the budget provision at Budget Estimate (BE) stage was Rs.  73,000  crore.   The  Ministry  had  requested  for  additional  budget  allocation  which  has been enhanced to Rs. 98,000 crore at the Revised Estimate (RE) stage as per the requirement of funds. The Ministry seeks additional funds under Mahatma Gandhi NREGS from Ministry of Finance as and when required for meeting the demand for work on the ground.

(c) & (d)      As per the Annual Reports on Periodic Labour Force Survey (PLFS) conducted during July 2017 - June 2018, July 2018 - June 2019 and July 2019 - June 2020, estimates of Unemployment Rate (UR) in usual status (ps+ss) in rural areas of India are given in Table below:

| Unemployment Rate (UR) according to usual status (ps+ss) in rural areas of India   | Unemployment Rate (UR) according to usual status (ps+ss) in rural areas of India   |
|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| Period                                                                             | UR (in percent)                                                                    |
| July 2017 - June 2018                                                              | 5.3                                                                                |
| July 2018 - June 2019                                                              | 5.0                                                                                |
| July 2019 - June 2020                                                              | 4.0                                                                                |

Mahatma Gandhi NREGS is a demand driven wage employment programme which provide 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.  In  the current financial year 2021-22 (as on 17.03.2022), 7.93 crore households have been offered employment under the Mahatma Gandhi NREGS and 341.97 crore person-days of work has been provided.

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