Mgnrega demand driven, will increase funds if needed: Giriraj Singh

Allocation for the Mahatma Gandhi National Rural Employment Guarantee Act would be increased if 'there was a demand' and the Opposition was 'creating drama' over 32% fund reduction for it in the budget, rural development minister Giriraj Singh has said.

"Mgnrega is a demand driven scheme and if demand goes up, we will increase allocation. This is a budget estimate and if you see revised estimates of past years, we have always increased the allocation," Singh told ET.

The budget had reduced funds for Mgnrega from last budget's revised estimate of '89,400 crores to '60,000 crore for FY24. Budget outlay for Mgnrega was '73,000 crore in FY23 initially. Congress president Mallikarjun Kharge had raised the issue during his news briefing after the budget on Wednesday.


"Khargeji is a senior leader, who knows very well about budget estimates and revised estimates. For example, in 2014, Mgnrega allocation was '33,000 crore. In eight years of Modi government, the total allocation of Mgnrega has been '5.8 lakh crore," Singh said. However, he said that he expected the demand to be less in the FY24.

"With so many infrastructure projects, people will find jobs in different sectors. In addition, whoever completes 100 days under Mgnrega receive mandatory skill training under Unnati Scheme. Their employability increases and I expect demand for Mgnrega to be lower than last year."

He said the budget for PM Awas Yojna has been increased from '48,000 crore to '79,590 crore. The actual spending had been revised to Rs 77,130 crore. A good part of the outlay goes to the rural development ministry for housing under PM Awas Yojna. This year, out of '79, 590 crore, v54,000 crore is for rural housing and remaining for urban housing schemes.

"The target for PM Awas has been set at 2.95 crore houses in rural areas. We have completed construction of 2.30 crore houses and by March 2024, we will fulfill the target," Singh said.