Government eyes full utilisation of Rs 86,000 crore under MGNREGS budget in FY25

The Union government is optimistic about fully utilising the Rs 86,000 crore allocated under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in FY25. This expectation takes into account rising demand for work under the scheme and adjustments for wage increases, according to Finance Ministry officials speaking to Business Today TV.

As of now, Rs 73,527 crore, or 88 percent of the annual allocation, has already been spent. Of this, Rs 48,547 crore has been directed toward wages and Rs 21,667 crore allocated for materials and skilled labour.

Officials are assessing whether additional funds may be required and remain vigilant about preventing misuse.

“MGNREGS is demand-driven and meant to support those in genuine need, not as a blanket employment-generation scheme,” said a senior official.

The government has been urging states to take greater responsibility for implementing the scheme to curb inefficiencies. Additionally, the NITI Aayog is in the process of appointing a consultant to review the programme’s performance, focusing on funding adequacy, transparency and accountability.

In a bid to enhance oversight, the Centre introduced mandatory digital attendance earlier this year through the National Mobile Monitoring System. The system ensures wages are paid via Aadhaar-linked bank accounts, reducing the potential for financial leakages.

So far in FY25, the scheme has generated 1.89 billion person-days of work. For context, FY24 saw 3.1 billion person-days, compared to 2.93 billion in FY23 and 3.63 billion in FY22.

MGNREGS, a centrally sponsored scheme without cost-sharing from states, guarantees at least 100 days of wage employment annually to rural households whose adult members volunteer for unskilled manual work, particularly during agricultural lean seasons.