Rural development ministry seeks additional funds of Rs 25,000 crore for MGNREGA

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The rural development ministry has sought additional funds of about Rs 25,000 crore for the rural job scheme in a clear indication of a rise in demand for work, sources said on Tuesday.

It has sought Rs 25,000 crore from the finance ministry and the funds are expected to be allocated by the second week of November, the sources told PTI.

In the Union budget for 2022-23, an amount of Rs 73,000 crore was allocated for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Of this amount, about Rs 54,000 crore have been allocated to the states so far, the sources said.

About 181-crore person days of work has also been generated under the programme so far. The total expenditure on the MGNREGA is expected to touch the last financial year's level of Rs 98,000 crore.

The government will take Parliament's approval for the additional fund allocation under the MGNREGA through the first batch of the supplementary demands for grants to be tabled in the upcoming winter session.

Mazdoor Kisan Shakti Sangathan founder Nikhil Dey welcomed the move to seek additional funds for the MGNREGA.

"The amount should be immediately allocated for releasing to states as the employment guarantee scheme is facing a severe liquidity crunch, which is impacting poor people across the country," Dey said.

The MGNREGA aims at enhancing the livelihood security of households in the rural areas of the country by providing at least 100 days of guaranteed wage employment in a financial year to every household, the adult members of which volunteer to do unskilled manual work.