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LATEST NEWS UPDATES | Fund crunch hits MGNREGA scheme -Priscilla Jebaraj

Fund crunch hits MGNREGA scheme -Priscilla Jebaraj

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published Published on Jan 27, 2020   modified Modified on Jan 27, 2020
-The Hindu

96% of annual allocation exhausted.

The Centre is on the verge of running out of funds for the crucial Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

More than 96% of the allocated money has already been spent or is needed to pay pending dues, with less than Rs.2,500 crore left to sustain the scheme for the next two months.

Fifteen States are already in the red. According to the scheme’s financial statement as on January 26, Rajasthan has the highest negative net balance of Rs.620 crore, followed by Rs.323 crore in Uttar Pradesh.

In fact, the situation on the ground may be worse as States do not always enter pending payments into the information system. “January, February and March are months with little agricultural activity, when rural workers desperately need employment. However, the scheme is running out of money, and will enter next year with pending liabilities,” said Rakshita Swamy of the People’s Action for Employment Guarantee movement.

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The Hindu, 27 January, 2020, https://www.thehindu.com/news/national/fund-crunch-hits-mgnrega-scheme/article30660683.ece?fbclid=IwAR27xY6QQzgGvfpN6iV8mOHhphRkRjUq3HhAEo0O5qPEOifhPkxPbTpcg-A


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