Nearly 60% of MGNREGS budget already spent in first 5 months of financial year

Nearly 60% of the budget allocated for the Union Government’s flagship rural employment programme — Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) — has been exhausted with a month still to go for the second quarter to end. As per the data available with the Ministry of Rural Development, which administers the programme, ₹51,521 crore out of ₹86,000 crore earmarked in the 2025-26 Union Budget has been spent till date.

The Finance Ministry recently capped spending under the programme at 60% of its annual allocation for the first half of the financial year 2025–26. The government thus will be left with ₹79 crore under the programme for the month of September. There are 12.15 crore active workers who rely on the programme to supplement their household’s income.

Nearly 38% of the budget allocated in 2025-26 went into covering the pending liability from the previous financial year of 2024-25. In reply to a question in Lok Sabha posed by Trinamool Congress MP Mahua Moitra on August 5, the Ministry had informed that as on April 1 this year, an amount of ₹17,259.56 crore was pending as wage liabilities and ₹15,641 crore as material liabilities from financial year 2024-25.

The expenditure in financial year 2024-25 for the corresponding period was ₹61,829 crore leading to a severe shortfall. No additional funds were allocated to the programme.

According to sources, top officials of the Ministry of Rural Development have again reached out to the Finance Ministry asking for a revised allocation but sources informed that so far there are no indications from the Finance Ministry on allotting additional funds.

The governing act of the scheme lays down that the government will provide at least 100 days of employment. In the last five years, the average days of employment provided per household is far below this promise. In financial year 2023-24, it was the highest at 52.08 average days and lowest in 2022-23 at 47.83.

At the beginning of this year, the Union Government had sent around 48 teams to inspect the MGNREGS work in 22 States and Union Territories. The team has submitted its reports on “financial misappropriation” and “procedural gaps” on the ground in various States.

Out of the 22 States and UTs inspected, only seven have submitted Action Taken Reports (ATRs) based on the issues flagged by the inspecting team. The Centre had invoked Section 27 of the MGNREGA against West Bengal for failing to submit ATRs. In June this year, the Calcutta High Court had directed the Centre to resume the programme in West Bengal. But sources said that owing to the existing shortfall, the Centre is dragging its feet in implementing the High Court order.