Lok Sabha Question No. 32 (STARRED), answered on 2025-07-22
Subject: Non-Release of Funds under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Shri  Selvaganapathi T.M.

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

## LOK SABHA STARRED QUESTION NO. 32 ANSWERED ON 22/07/2025

## NON-RELEASE OF FUNDS UNDER MGNREGS

- *32.  SHRI SELVAGANAPATHI T.M.:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether it is a fact that many State Governments have raised a concern  with  regard  to  non-release  of  funds  under  Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) by the Union Government, if so, the details thereof;
- (b) whether  budget  allocation  to  MGNREGS  has  been  showing  a steady decrease over the years, if so, the details thereof; and
- (c) whether  the  Government  is  considering  to  wind  up  the  said scheme and if so, the reasons therefor?

ANSWER MINISTER OF RURAL DEVELOPMENT (SHRI SHIVRAJ SINGH CHOUHAN)

- (a) to (c):       A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 32 FOR 22.07.2025.

- (a): Mahatma Gandhi National Rural Employment Guarantee Scheme  (Mahatma  Gandhi  NREGS)  is  a  demand  driven  wage employment  Scheme.  Under  the  Scheme  wage  payments  are directly  credited  by  the  Central  Government  to  the  account  of beneficiaries through  Direct Benefit Transfer protocol.

With  regard  to  Material  and  Admin  components,  States/UTs  are required  to  furnish  fund  release  proposals  to  the  Government  of India.  The  Central  Government  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.

In the current financial year 2025-26 (as on 17.07.2025) an amount of Rs. 44,323 crore has been released to the States/Union Territories,  which  includes  funds  for  wage,  Material  and  Admin components under Mahatma Gandhi NREGS.

- (b):   Regarding  budget  allocation  for Mahatma  Gandhi  NREGS  it  is submitted that, for the financial year 2024-25, budget allocation of ₹86,000 crore has been made, which was  the highest ever allocation  for  scheme  at  the  Budget  Estimate  (BE)   stage  since inception. In the financial  year  2025-26,  the  Government  has retained this allocation at ₹86,000 crore, ensuring continued support for rural employment.

Here it is also submitted that keeping in view demand driven nature of the Scheme, the Ministry of Rural Development closely monitors demand for employment at ground level and seeks additional funds from the Ministry of Finance as and when required.

- (c):  There is no such proposal. In fact, continuous efforts are being made to strengthen the implementation of the scheme at the ground level so that the core objectives of the Scheme such as providing guaranteed employment resulting in creation of productive assets of prescribed quality and durability, strengthening livelihood resource base of the poor, proactively ensuring social inclusion and strengthening Panchayat Raj institutions are achieved.

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