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Govt reduces MNREGA allocation to Rs 73,000 cr

February 01, 2021 23:36 IST

The Centre has allocated Rs 73,000 crore to the rural employment guarantee programme Mahatma Gandhi National Rural Employment Guarantee Act for the next fiscal 2021-22, substantially lower than the actual expenditure of Rs 1.11 lakh crore in the current fiscal which included an additional Rs 40,000 crore for the scheme given by the government in the wake of the pandemic's impact on the economy.


IMAGE: Labourers work under the Mahatma Gandhi National Rural Employment Guarantee Act on the outskirts of Ajmer. Photograph: PTI Photo

The Centre had allocated Rs 40,000 crore to MGNREGA as part of the Pradhan Mantri Garib Kalyan Yojana.

As per a detailed financial statement, the budget presented by Finance Minister Nirmala Sitharaman on Monday has allocated Rs 73,000 crore, over 34 per cent less than the revised estimate of Rs 1,11,500 crore for 2020-21.

The budgetary estimate for 2020-21 was Rs 61,500 crore.

For all other major flagship welfare schemes under the Rural Development Ministry, the allocation for the 2021-22 fiscal increased from the revised estimate for the current 2020-21 fiscal.

The allocation for the rural roads scheme -- Pradhan Mantri Gram Sadak Yojana -- increased to Rs 15,000 crore from Rs 13,700 crore, whereas the funds allocated to the National Rural Livelihood Mission jumped by more than 48 per cent to Rs 13,677 crore from Rs 9,210 crore in the period under review.

Talking about the budget, Union Rural Development Minister Narendra Tomar said it aims at making India a self-reliant nation.

In terms of budgetary allocation, there has been an increase of Rs 11,500 crore in allocation to MGNREGA to Rs 73,000 crore from Rs 61,500 crore during the period under review.

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