Lok Sabha Standing Committee Concerned about Reduction in MGNREGA Budget, Recommends Increase

A report released by a Parliamentary standing committee has expressed concern over the reduction of funds for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The report by the Lok Sabha Standing Committee on Rural Development and Panchayati Raj released on 14 March, 2023 said that the Budget Estimates for MGNREGS has been reduced by Rs. 29,400 Crore for 2023-24 when compared to the Revised Estimates of 2022-23. 

The report said that NREGA is a last resort of succor for the jobless section who don’t have any other means to feed them and their family members. "The importance of the scheme itself got highlighted through the substantially huge increment at the RE stage in 2020-21 and 2021-22 from Rs. 61,500 Crore to Rs. 1,11,500 Crore and Rs. 73,000 Crore to Rs. 99,117.53 Crore respectively to meet the increase in demand of work during corona pandemic".

The report stated that "The Committee are unable to comprehend the rationale for reduced allocation of fund under MGNREGA. Since it is very much necessary that adequate Budgetary Allocation
ought to be made for the effective implementation of the Scheme, the Committee strongly feel the requirement for the matter of decreased fund allocation to be looked afresh". The Committee has strongly recommended that the Department of Rural Development apprise themselves of the still existing high demand for job under MGNREGA at the ground level more realistically and press upon the Ministry of Finance for increased allocation to MGNREGA.  

Please click here to access the report