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News: Government has recently announced 10,000 crore additional funds to supplement the needs of the state under MGNREGA. However, 24 states and UT’s still show a negative net balance.
| Also read: MGNREGA: Issues and Significance – Explained, pointwise |
What are the reasons behind the fund crunch under MGNREGA?
-High demand because of the extended effects of pandemics in rural areas.
-Low budget allocation for the MGNREGA scheme. In the case of 2021-22, the total allocations were ₹73,000 crores, much lower than the ₹1,11,500 crore as revised estimates in expenditure in 2020-21.
| Read here: What are the reasons for the delayed payments of MGNREGA wages? |
What is the impact?
According to the activists, delayed payment led to increase in an unmet demand of 20% in Bihar, Telangana and Gujarat.
| Also read: What is the impact of low fund allocation to MGNREGA? |
What should be the way forward?
Considering MGNREGA as the lifeline of rural communities, Government should make up the shortfalls quickly.
Source: This post is based on the article “Shore in the lifeline” published in The Hindu on 27th November 2021.
