The Union government is optimistic about the full utilization of Rs 86,000 crore allocated under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in FY25. This expectation takes into account the increase in demand for work under the scheme and the adjustment of wage increases, according to officials of the Ministry of Finance, speaking to Business today TV.
So far, Rs 73,527 crore, or 88 per cent of the annual allocation, has already been spent. Out of this, Rs 48,547 is for labor and Rs 21,667 is allocated for materials and skilled manpower.
Officials are assessing whether additional funds may be needed and are being vigilant to prevent abuse.
“MGNREGS is demand-driven and meant to support those who are truly in need, not as a blanket employment generation scheme,” said a senior official.
The government is calling on states to take greater responsibility for implementing the scheme to curb inefficiencies. Additionally, NITI Aayog is in the process of appointing a consultant to review the effectiveness of the programme, focusing on funding adequacy, transparency and accountability.
In a bid to strengthen surveillance, the Center introduced mandatory digital attendance earlier this year through the National Mobile Monitoring System. The system ensures payment of wages through Aadhaar-linked bank accounts, reducing the possibility of financial leakage.
So far in FY25, the scheme has generated 1.89 billion man-days of employment. For context, there were 3.1 billion person-days in FY24, compared to 2.93 billion in FY23 and 3.63 billion in FY22.
MGNREGS, a centrally sponsored scheme with no cost-sharing by the states, guarantees at least 100 days of wage employment annually to rural families whose adult members volunteer for unskilled manual labour, especially during periods of poor agricultural work.
