Ministry of Rural Development has argued that such spending limits won't work for the scheme as it is a demand-driven programme, the report says.
This is the second time, the Centre has left the allocation for the rural job plan unchanged. For the current fiscal, too, the outlay for the scheme was the same as in 2023-24 at Rs 86,000 crore
The allocation is a xx percent drop from the over Rs 90,000 crore the government had spent on the programme in the previous year
The flagship scheme for rural employment, MGNREGA has been allocated Rs86,000 cr , up from budget estimates of Rs 60,000 cr in 2023-24, same as the interim budget
In the interim Budget for FY25, the central government pegged fiscal deficit target at 5.1 percent in the ongoing financial year from the revised aim of 5.8 percent in FY24.
The divergence between the actual spending and initial budgets has increased post-Covid. The increase in outlay has also happened irrespective of agriculture output for the year.
A large proportion, nearly 60%, is expected to go towards capex
“Rural distress has not been receiving adequate attention from policymakers. The MGNREGA and subsidy allocations have been coming down in the last 2-3 years. This requires analysis and necessary adjustments by policymakers,” DK Srivastava, Chief Policy Advisor, E&Y, said.
Employment indicators showed mixed trends. The number of net new subscribers under the Employees' Provident Fund Organisation increased year-on-year.
The flagship employment guarantee scheme MGNREGA has the potential to boost rural economic growth beyond just being the jobs generator for unskilled workers
The allocation for the rural job plan under MGNREGA had seen a steep cut of 33% to Rs 60,000 crore in the FY24 Budget compared to the revised estimate of Rs 89,400 crore in FY23
Budget 2024: While the allocation for the flagship rural employment guarantee scheme has fluctuated in the last 10 years, the upcoming Union Budget is likely to allocate a substantial amount for 2024-25.
Despite the additional spending on account of subsidies, the Centre is confident of meeting the fiscal deficit target of 5.9 percent of GDP.
Several experts and institutions including the Reserve Bank of India have consistently highlighted the need to distinguish freebies from public or merit goods, which bring larger economic benefits.
The governor spoke to him about the West Bengal government’s claims for due central funds on account of MGNREGA, the official said
Why -- when growth is stronger this fiscal year than in 2019-20 -- is demand for work under the rural employment guarantee scheme higher this year?
The number of households demanding work under the rural employment guarantee scheme is higher than in 2022 and even in pre-pandemic 2019
To be sure, the finance ministry will assess around October-December if there is a need for additional funds for MNREGA in the current fiscal based on the demand scenario going ahead.
Rural consumption is dependent on many factors such as the monsoons, higher real wages, work availability in urban areas and farm incomes. But the continuing high demand for work under MGNREGA indicates distress at the bottom of the rural pyramid
Demand for work under the rural employment guarantee scheme this fiscal year till June has been much higher than the same period last year, pointing to rural distress
Demand for work under the rural employment guarantee scheme in April and May this year have been higher than the same period last year
The Union Ministry of Rural Development issued a notification on the change in wage rates under the Mahatma Gandhi National Rural Employment Guarantee Scheme on March 24.
In a briefing held for the Members of Parliament on March 14 at the Deputy Speakers Hall, Constitution Club, New Delhi, the civil society members urged them to raise the issues of crores of labourers and workers who have "not been paid since December 2021".
The survey says the number of works done under MGNREGS has been rising. While 85 lakh works were completed in FY22, 70.6 lakh had been completed in FY23 by January 9
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