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LATEST NEWS UPDATES | MNREGA: Once again, Jaitley (wrongly) claims highest-ever outlay for 'monument to Congress failure' -Anumeha Yadav

MNREGA: Once again, Jaitley (wrongly) claims highest-ever outlay for 'monument to Congress failure' -Anumeha Yadav

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published Published on Mar 2, 2016   modified Modified on Mar 2, 2016
-Scroll.in

Already 21 states have no funds and pending liabilities of Rs 6359 crore – as much as 16% of the outlay.

Presenting his third budget, Finance Minister Arun Jaitley announced an outlay of Rs 38,500 crore to the Mahatma Gandhi National Rural Employment Guarantee scheme. This was the second consecutive year the finance minister increased the outlay for the rural works scheme, which Prime Minister Narendra Modi had last February attacked as a rural development scheme that his government intended to continue as a “living monument to the failures of the Congress.”

In his budget speech on Monday, Jaitley said the outlay of Rs 38,500 crore, which “if it is spent, will be the highest ever expenditure on MNREGA.” Specifically, this amount will be focused on taking up public works to create “five lakh farm ponds and dug wells in rain fed areas, and ten lakh compost pits for production of organic manure” in rural areas, Jaitley stated in his speech.

But the outlay announced by Jaitley was already exceeded two years back. As per ministry of rural development data, in 2013-14, the last year of United Progressive Alliance government recorded an expenditure of Rs 38,552 crore, higher than the figure mentioned by Jaitley. It was the highest in 2010-11 when expenditure on the scheme was Rs 39,377 crore. The outlay for 2016-17 is, however, the highest outlay by the Modi government since last year’s outlay was Rs 34,699 crore, and in the year prior to that it was Rs 34,000 crore.

“A cut in real terms”

The highest-ever outlay to the scheme since the beginning of the scheme in 2006 was in 2010-11 of Rs 40,100 crore. The latest budget outlay continues the trend of a decline in real terms if accounted for inflation. It also masks the acute shortage of funds in the rural scheme on the ground in 21 states, including in eight drought-affected states.

A substantive portion of the current outlay will get spent in simply meeting the pending liabilities of Rs 6,359 crore from the budgetary allocation from the last financial year, and maintaining previous last year’s levels of employment in the programme and accounting for inflation would require a minimum requirement of Rs 47,549 crore, noted the People’s Action for Employment Guarantee, a coalition of organisations that had led a campaign for passing of the employment guarantee law.

The group noted that including the lag in data entry and employment during the month of March 2016, which is still pending, any allocation less than Rs. 50,000 crore is insufficient as per current rates of employment and in fact amounts to a budget cut.

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Scroll.in, 29 February, 2016, http://scroll.in/article/804356/mnrega-once-again-jaitley-wrongly-claims-highest-ever-outlay-for-monument-to-congress-failure


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