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LATEST NEWS UPDATES | Modi Government's Budgetary Allocation for MNREGA Is Barely an Increase

Modi Government's Budgetary Allocation for MNREGA Is Barely an Increase

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published Published on Feb 2, 2017   modified Modified on Feb 2, 2017
-TheWire.in
 
Two supplementary MNREGA allocations were made by the government last year. This means, there’s only a 1%, not 25%, actual increase in this year’s Budget.
 
New Delhi: The finance minister claimed that this year’s Budget allocations for the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) were a new “record”, at Rs 48,000 crore. But is this really a substantial increase? And, more importantly, is it enough?

The 2016-17 Budget had allocated Rs 38,500 crore for the scheme; if you compare this year’s number to that, you see an increase of 25%. But what these numbers (that Arun Jaitley proudly announced) hide is that two supplementary allocations were made in the last year, making the final allocation Rs 47,500 crore. The increase in this year’s allocation, then, is of a mere Rs 500 crore, or 1%.

Highlighting this point, the People’s Action for Employment Guarantee (PAEG, which includes activists such as Aruna Roy, Nikhil Dey and Annie Raja) has issued a press release that attempts to explain why this changed allotment isn’t really a considerable increase at all and why MNREGA would need higher allocations to function smoothly.

Being a demand-driven scheme, adequate resources for MNREGA need to be made available whenever there is demand for it. At the moment, the statement says, 22 of 34 states and union territories have negative balances in their MNREGA accounts. According to government data for the last year, 93% of the funds available for MNREGA have been spent while Rs 3,469 crore in pending liabilities have piled up. Given this situation, which the government has admitted, was the finance minister’s proud half-announcement an attempt to pull wool over people’s eyes?

Please click here to read more.

TheWire.in, 1 February, 2017, https://thewire.in/104882/modi-government-budget-mnrega/


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