Lok Sabha Question No. 2219 (UNSTARRED), answered on 2022-03-15
Subject: Budgetary Allocation to MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Karti P. Chidambaram

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT

## DEPARTMENT OF RURAL DEVELOPMENT

## LOK  SABHA

## UNSTARRED QUESTION NO. 2219 ANSWERED ON 15/03/2022

## BUDGETARY ALLOCATION TO MGNREGS

## 2219.   SHRI KARTI P. CHIDAMBARAM:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the Government is cognizant of the demand raised by several stakeholders for higher budgetary allocation to Mahatma  Gandhi  National Rural  Employment Guarantee Scheme (MGNREGS);
- (b) if so, the reasons for the unusually low projected person days in Q4 of Financial year 2021-22,  given  that  previous  trends  and  traditional  harvest  patterns  indicate  that MGNREGS work usually increases in Q4;
- (c) whether the Government has communicated to the States to cut down on MGNREGS work and if so, the details thereof; and
- (d) whether the Government is violating the mandate of the MGNREGS which states that remuneration  under  MGNREGS  can  not  be  less  than  the  minimum  wage  in  each State?

## ANSWER

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

(a)  to  (c)  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme  (Mahatma Gandhi NREGS) is a demand driven wage employment programme and funds are released to the  States/UTs  on  the  basis  of  "agreed  to"  Labour  Budget  (LB)  and  performance  of  the States/UTs during the financial year. Fund release to States/UTs is a continuous process and Central Government is committed in making funds available keeping in view the demand for work on the ground.

Central Government had enhanced the financial allocation under Mahatma Gandhi NREGS for 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 has 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 fund for Mahatma Gandhi NREGS from Ministry of Finance as and when required for meeting the demand for work on the ground.

(d)   No such provision exists. In fact, as per Section 6 (1) of Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), 2005, the Central Government may by notification specify the wage rate for unskilled work for its beneficiaries. Accordingly, the Ministry  of  Rural  Development  notifies  Mahatma  Gandhi  NREGA  wage  rate  for  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  year  based  on change in Consumer Price Index for Agricultural Labour (CPI-AL). If the calculated wage rate of any State is coming lower than the wage rate of previous financial year, it is being protected  by  maintaining  the  previous  financial  year  wage  rate.  The  revised  wage  rate  is made  applicable  from  1st  April  of  each  financial  year.  However,  State  Governments  can provide  wage  over  and  above  the  wage  rate  notified  by  the  Central  Government  under Mahatma Gandhi NREGS.

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