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