Parliamentary panel slams government over MGNREGA fund cuts

The parliamentary committee on rural development and panchayati raj has pulled up the central government over a cut in the budgetary allocation for the rural job guarantee scheme, stressing that inadequate funds could hamper work under the programme.

The government earmarked Rs 60,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for FY24, as it had assessed work demand to drop steeply this fiscal year on improved economic activities. In the last fiscal, it had budgetted `73,000 crore for the scheme but ended up spending about Rs 90,000 crore.

Of course, finance minister Nirmala Sitharaman has pledged more funds for the MGNREGS, a demand-driven programme, in the current fiscal year, if required. In its report tabled in the Lok Sabha on Thursday, the panel also criticised the department of rural development for inadequate explanation for the reduction in the FY24 outlay.