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LATEST NEWS UPDATES | No money left in MGNREGA coffers; 21 States in the red -Priscilla Jebaraj

No money left in MGNREGA coffers; 21 States in the red -Priscilla Jebaraj

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published Published on Oct 28, 2021   modified Modified on Oct 30, 2021

-The Hindu

States creating artificial demand, says official; workers pushed into ‘forced labour’ by delayed payments, say activists

The Centre’s flagship rural employment scheme has run out of funds halfway through the financial year, and supplementary budgetary allocations will not come to the rescue for at least another month when the next Parliamentary session begins. According to its own financial statement, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme shows a negative net balance of 8,686 crore.

This means that payments for MGNREGA workers as well as material costs will be delayed, unless States dip into their own funds. Activists say the Centre is condemning workers to “forced labour” by delaying wage payments at a time of economic distress. However, the Centre is now accusing many States of “artificially creating demand” for work on the ground.

The MGNREGA is a demand driven scheme, guaranteeing 100 days of unskilled work to any rural household that wants it. During last year’s COVID-19 lockdown, the scheme was ultimately given its highest budget of 1.11 lakh crore and provided a critical lifeline for a record 11 crore workers.

However, the scheme’s 2021-22 budget was set at just 73,000 crore, with the Centre arguing that the nationwide lockdown was over and that supplementary budgetary allocations would be available if money ran out. As on October 29, the total expenditure including payments due had already reached 79,810 crore, pushing the scheme into the red. Already, 21 States show a negative net balance, with Andhra Pradesh, Tamil Nadu and West Bengal faring the worst.

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The Hindu, 29 October, 2021, https://www.thehindu.com/news/national/no-money-left-in-mgnrega-coffers-21-states-in-the-red/article37241358.ece


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