The negative balance is largely on account of pending material cost for the work done under the programme during the year and even earlier.
For the second month running, the demand for work under the flagship MGNREGA scheme has been lower than in 2020, which was an extraordinary year for the scheme. Latest data shows that around 35.1 million households have sought work under MGNREGA this June, or 21.48 per cent lower than the number that had sought work in the same month of 2020. This May, some 27.6 million households had sought work under the scheme, or 26.01 per cent lower than the same month last year.
The situation could become more acute as millions of migrants who had returned to their villages during the lockdown come back to the towns for higher wages and better livelihoods.
Many farmers in drought hit states are seeking MGNREGA work but the state government's coffers do not have enough fund to pay the salaries of these workers.
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