Likely hike of 50% in FY25 Budget outlay for MGNREG

Likely hike of 50% in FY25 Budget outlay for MGNREG (Indian Express).

Syllabus: GS-II

Subject: Governance

Topic: Welfare schemes for vulnerable sections of the population.

Context: India plans a 50% increase in the 2024-25 budget for MGNREGS.



  • The Indian government is expected to allocate around Rs 90,000 crore for MGNREGS in the 2024-25 Budget, a 50% increase.
  • The higher allocation aims to signal support for the rural employment scheme ahead of general elections.
  • FY24 saw a lower provision of Rs 60,000 crore due to misappropriation concerns, leading to a supplementary grant.
  • Initiatives to curb leakages include the mandatory Aadhaar-Based Payment System for wage payments and DBT, saving 10% on wages.
  • The government is addressing corruption allegations, halting funds to West Bengal, and focusing on plugging leakages.
  • Despite challenges, MGNREGS generated 2.45 billion person-days of work in FY24, with the potential to reach 2.94 billion by March.



  • MGNREGA, launched in 2005, ensures 100 days of employment annually for rural households through unskilled manual work.
  • As of 2022-23, it has 15.4 crore active workers.
  • A legal right to work, addressing chronic poverty, mandates at least one-third of beneficiaries to be women.
  • Wages align with state-specific minimum wages for agricultural laborers.
  • A demand-driven scheme guarantees work within 15 days of request or provides an unemployment allowance. width=

Conclusion: India’s budget signals a robust 50% increase for MGNREGS, addressing past misappropriation concerns, and bolstering rural employment ahead of elections.

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