Lok Sabha Question No. 4132 (UNSTARRED), answered on 2025-03-25
Subject: Disbursement of Wages under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Shri N K Premachandran

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

## LOK SABHA UNSTARRED QUESTION NO. 4132

## ANSWERED ON 25/03/2025

## DISBURSEMENT OF WAGES UNDER MGNREGS

## 4132. SHRI N K PREMACHANDRAN:

## Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether  the  Government  proposes  to  disburse wages  of Mahatma  Gandhi National Rural Employment Guranatee Scheme  (MGNREGS) workers without arrears and delay;
- (b)
- if so, the details of action taken thereon in this regard;
- (c) whether  the  Government  proposes  to  disburse  the  arrears  of wages of MGNREGS workers in Kollam District, Kerala;
- (d)
- if so, the details thereof, if not, the reasons therefor;
- (e) whether  the  Government  proposes  to  sanction  the  labour budget  of  104.30  Lakhs  person  days  submitted  by    Kollam District during the financial year 2024-25;
- (f)
- if so, the details thereof;
- (g) whether  the  Government  initiated  action  for  disbursing  the arrears an amount of Rs.7658.57 Lakhs;
- (h)
- if so, the details thereof; and
- (i) whether  the  Government  proposes  to  approve  the  labour budget of Kollam District on the basis of the performance and requirement, if so, the details thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN)

(a)to(d) and (g)& (h):  Mahatma  Gandhi  National  Rural  Employment Guarantee  Scheme  (Mahatma  Gandhi  NREGS)  is  a  demand  driven wage employment Scheme. Under Mahatma Gandhi NREGS, States/UTs  furnish  funds  release  proposals  to  the  Government  of India. The Ministry releases 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  States/UTs.  Fund  release  to  the  States/UTs  is  a  continuous process  and  Central  Government  is  committed  in  making  funds available to States/UTs for the implementation of the Scheme as per the demand for work on the ground.

Under  Mahatma  Gandhi  NREGS,  wage  payments  are  directly credited by the Central Government to the account of beneficiaries through the Direct Benefit Transfer protocol.

During  the  financial  year  2024-25  (as  on  19.03.2025),  a  total amount  of  Rs. 84,114.70 crore has been  released under the Mahatma Gandhi NREGS, which includes  Rs. 62,660.45 crore for the wage component and Rs.21,454.25 crore for material and administrative components. During the same period, an amount of Rs. 3,034.24 crore has been released to the State of Kerala, which includes Rs. 2,451.57 crore for the wage component and Rs. 582.67 crore for material and administrative components.

Under this scheme, fund release is a continuous process. The government of India releases material and admin funds to the State Government  and  the  State  Government  releases  the  funds  to  its Districts  accordingly.  The  government  of  India  does  not  release material funds directly to the Districts.

During  the  financial  year  2024-25,  97.79%  of  Fund  Transfer Orders  (FTOs)  under  the  Mahatma  Gandhi  NREGS  have  been generated  within  15  days  of  muster  roll  closure  nationwide.  In

Kerala, the percentage stands at 99.39% for the same period.

(e),(f)& (i): With regard to allocation of 'Agreed to' Labour Budget to the States/Union Territories, it is stated that in the October month of the current financial year, States/UTs are requested to send the proposal for the annual action plan for incoming financial year after following due process. Based  on the proposal received from States/UTs an Empowered Committee under the Chairpersonship of the Secretary (Rural Development) approves the 'Agreed to' Labour Budget. The Empowered Committee also consists of the Secretary in charge of the Rural Department of States/UTs as a member. This 'Agreed  to'  Labour  Budget  is  an  indicative  number  for  better planning  so  that  work  can  be  provided  against  demand  on  time. During the course of the year, the 'Agreed to' Labour Budget may

get  revised  depending  upon  demand  for  employment  by  enrolled households.

As  per  NREGASoft,  for  the  financial  year  2024-2025  (as  on 21.03.2025), Agreed to Labour Budget for Kerala under the Mahatma Gandhi NREGS is 600 lakh persondays against which total of   866.56  lakh  persondays  have  been  generated  in  the  state. Similarly,  in  Kollam  district,  Kerala,  the  projected  persondays  (as per  state  Govt.)  for  the  same  period  is  60.09  lakh,  against  which 91.61 lakh persondays have been generated as on date.

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