Acute Shortage of Funds under MGNREGA

The Centre’s flagship rural employment scheme has run out of funds halfway through the financial year.

  • According to its own financial statement, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme shows a negative net balance of Rs. 8,686 crore.
  • 21 States show a negative net balance, with Andhra Pradesh, Tamil Nadu and West Bengal faring the worst.
  • During last year’s COVID-19 lockdown, the scheme was ultimately given its highest budget of Rs. 1.11 lakh crore and provided a critical lifeline for a record 11 crore workers.
  • However, the scheme’s 2021-22 budget was set at just Rs. 73,000 crore, with the Centre arguing ....
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