Record Budget Allocation of Rs 86,000 Crore for Rural Jobs Scheme in 2024-25

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Record Budget Allocation of Rs 86,000 Crore for Rural Jobs Scheme in 2024-25

New Delhi, Dec 3 (NationPress) For the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS), a budget allocation of Rs 86,000 crore has been designated at the Budget Estimate (BE) stage for 2024-25, representing the highest allocation ever at the BE stage since the scheme's establishment, as informed in the Lok Sabha on Tuesday.

The Minister of Rural Development, Shivraj Singh Chouhan, in response to a question from T.R. Baalu, stated that the BE allocation for the scheme was Rs 60,000 crore in 2023-24, Rs 73,000 crore in 2022-23, Rs 73,000 crore in 2021-22, Rs 61,500 crore in 2020-21, and Rs 60,000 crore in 2019-20.

In his written reply, he mentioned that the Revised Estimate for the scheme was Rs 86,000 crore in 2023-24, Rs 89,400 crore in 2022-23, Rs 98,000 crore in 2021-22, Rs 1,11,500 crore in 2020-21, and Rs 71,001.81 crore in 2019-20.

When addressing a question about pending fund claims from states until March 2024, the Minister clarified, "There is no pending liability for the wage component under Mahatma Gandhi NREGS for the financial year 2023-24."

According to NREGASoft, an amount of Rs 16,300 crore was pending for liability concerning wage, material, and administrative components for the financial year 2023-24, which has already been released in the first quarter of FY 2024-25, Chouhan stated.

The Mahatma Gandhi NREGS operates as a demand-driven wage employment initiative. Under this scheme, States/UTs submit fund release proposals to the Government of India. The Ministry allocates funds periodically in two tranches, with each tranche comprising one or more installments, considering the "Agreed to Labour Budget", demand for work, existing balance, fund utilization rate, pending liabilities, overall performance, and submission of required documents by the States/UTs.

Following the provisions of the Act, States/UTs submit their annual action plan proposals to the Central government after completing necessary processes. An Empowered Committee chaired by the Secretary (Rural Development) determines the projected Labour Budget in consultation with the State Government for the new financial year, the Minister noted.

This "Agreed to Labour Budget" serves as an indicative figure to enhance planning and ensure timely work provision against demand. Throughout the year, the "Agreed to Labour Budget" may be revised based on employment demand from enrolled households, the Minister added.