New Delhi (Agency): The Parliamentary Committee on Rural Development and Panchayati Raj has criticized the government for reducing the allocation of funds for the Mahatma Gandhi National Rural Employment Act (MGNREGA), a crucial rural employment scheme. The panel believes this could hinder the work being done under the scheme. The committee also criticized the Department of Rural Development for not providing reasons behind the fund cut.
This year, MGNREGA’s budget was slashed to Rs 60,000 crore for the fiscal year 2023-24. In the previous year, the government had allocated Rs 73,000 crore for MGNREGA, and the revised budget estimates indicated a spending of Rs 89,400 crore. The panel noted this was a substantial decrease of Rs 29,400 crore from the revised estimates of the previous year.
A report presented in the Lok Sabha on Thursday by the committee showed that the Union government had pending liabilities of Rs 6,231 crore in wages and Rs 7,616 Crore in material components under MGNREGA as of January 25 this year.
“Considering the increased demand shown by the scheme at the revised estimates stage during 2020-21, 2021-22 and 2022-23, and also the proposed demand made by the Department of Rural Development for FY 2023-24 was Rs 98,000 crore, the committee had strongly recommended that the department not only assess the ground situation regarding demand for jobs under MGNREGA realistically but also impress upon the Ministry of Finance for increased allocation to MGNREGA,” the panel stated.
The Department of Rural Development responded to the fund cut by providing “numerical facts regarding the funds allocated to MGNREGA at budget estimated and revised estimates stages from 2019-20 onwards”. It clarified that whenever additional funds were required, the Ministry of Finance was requested to provide them, and the Government of India was committed to releasing funds for wage and material payments.
However, the parliamentary committee called this response “stereotypical” and “routine”. It expressed dissatisfaction with the Department of Rural Development for not providing a concrete answer on how it arrived at Rs 98,000 crore as the budget estimate for MGNREGA nor proposing any concrete action to address the probable lack of funds at this time.
The panel further expressed dissatisfaction with the department’s handling of such a significant issue, which could lead to disruption of work under MGNREGA due to a shortage of funds. The committee strongly reiterated their recommendation and urged the department to manage MGNREGA’s fund-related aspects with better financial understanding and stronger coordination with the Ministry of Finance.
The panel expressed concern that the delay in wage payments and the release of material funds would deter MGNREGA’s needy beneficiaries from receiving relief from their poverty. It recommended that the department ensure the timely release of the Centre’s shares in wages and materials through effective measures and better coordination with states.
The committee stated that the Department of Rural Development’s response was “completely silent” on the progress made in reducing pending liabilities. “The committee finds such reply evasive in nature and may lead to lopsided implementation of MGNREGA. Therefore, the committee once again urges the department to take responsibility and initiate concrete measures to reduce and eventually end the existence of pendency in the release of wage/material share of the Centre through result-oriented and concerted efforts,” the committee concluded.