Economy

Centre Releases Rs 23,147 Crore Under Mahatma Gandhi National Rural Employment Guarantee Scheme

Ministry of Rural Development has released Rs 23,147 crore to various States/Union Territories under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The funds, besides clearing all wage and payment liabilities of the previous year, will also ensure smooth implementation of the scheme in the coming months of FY 2018-19.

In line with the commitment of Central Government towards the release of funds by 10 April 2018, the Ministry has released Rs 14,995 crore for wages and Rs 8,152 crore for material expenditure under MGNREGS. This release includes the amount pending as liability for the work done in the last weeks of FY 2017-18.

The States/Union Territories have been advised to ensure that all the pending liabilities are duly cleared. The Ministry is closely monitoring the compliance.

The Central Government has an initial budget provision of Rs 55,000crore in FY 2018-19 which is the highest since the inception of the programme. Last year the initial budget provision was Rs 48,000crore which was revised upwards during the later stages.

The Central Government pays for 100 percent of the wage expenditure and 75 percent of the material expenditure under the scheme. The total expenditure in FY 2017-18 under the scheme was Rs 64,189 crore.

In FY 2017-18, six states (Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh and Meghalaya) who are on the National Electronic Fund Management System (NeFMS) released a cumulative of Rs 1,570 crore over and above their matching state share.

NeFMS has been a great enabler in transferring MGNREGA wages directly to beneficiaries’ bank/post office accounts and there is no hassle if States want to contribute their share or more.

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