Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 2342 regarding the timely release of funds for centrally sponsored schemes (CSS) in West Bengal. It outlines the funds released to West Bengal from FY 2022-23 to FY 2024-25, issues related to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Pradhan Mantri Awas Yojana-Gramin (PMAYG), and financial assistance for capital expenditure investment. The response covers the period until July 28, 2025.
Key Points / Main Content:
Funds Released to West Bengal:
* A total of Rs. 33,543 crore has been released to West Bengal as the central share of CSS from FY 2022-23 to FY 2024-25.
* The release of funds is contingent upon compliance with scheme guidelines and utilization of previously released funds.
Mahatma Gandhi NREGS:
* The State Government is responsible for ensuring transparency and accountability in implementing the scheme.
* Funds to West Bengal have been stopped since March 9, 2022, under Section 27 of the Mahatma Gandhi NREG Act, 2005, due to non-compliance with Central Government directives, including financial misappropriation and lack of transparency.
Pradhan Mantri Awas Yojana-Gramin (PMAYG):
* The Ministry of Rural Development allocated a total target of 45,69,423 houses to West Bengal, with 45,69,032 houses sanctioned and 34,19,432 houses completed.
* Rs. 25,798 crore was released as central share from FY 2016-17 to FY 2021-22 for PMAYG implementation.
* No central share of funds has been released from FY 2022-23 to FY 2025-26 due to non-submission of satisfactory Action Taken Reports (ATR) on irregularities observed by monitoring teams.
Financial Assistance for Capital Expenditure:
* Rs. 23,073 crore has been released to West Bengal under the Scheme for Special Assistance to States for Capital Expenditure/Investment from FY 2020-21 to July 28, 2025.
Impact Analysis:
Government of West Bengal:
* Impact: The state government is impacted by the stoppage of funds for MGNREGS and PMAYG due to non-compliance and irregularities. However, it has received substantial funds under CSS and the Scheme for Special Assistance to States for Capital Expenditure/Investment.
* Action Required: The state government needs to address the issues raised in the inspection reports for MGNREGS and submit satisfactory ATRs for PMAYG to resume fund releases.
Ministry of Rural Development:
* Impact: Responsible for monitoring the implementation of MGNREGS and PMAYG, and for ensuring compliance with scheme guidelines.
* Action Required: Continue monitoring the schemes' implementation in West Bengal and assess the ATRs submitted by the state government.
Beneficiaries of MGNREGS and PMAYG:
* Impact: Beneficiaries are affected by the delayed or non-release of funds, which can impact wage payments under MGNREGS and the construction of houses under PMAYG.
* Action Required: Await resolution of the issues between the Central and State Governments to ensure timely disbursement of benefits.
Key Entities Referenced
West Bengal: A state in India, the subject of the policy document concerning central funds allocation.
MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act/Scheme, a centrally sponsored scheme for wage employment.
Pradhan Mantri Awas Yojana: A centrally sponsored scheme, specifically the PMAY-Gramin (PMAYG) component, aimed at providing housing for all in rural areas.
Ministry of Finance: The government ministry responsible for financial matters, answering questions about fund allocation.
Ministry of Rural Development: The government ministry responsible for rural development programs, including MGNREGA and PMAYG.
Mahatma Gandhi NREGS Act, 2005: The legal framework governing the Mahatma Gandhi National Rural Employment Guarantee Scheme.
Awaas Plus 2018: A survey conducted in 2018 to identify eligible beneficiaries for the Pradhan Mantri Awas Yojana-Gramin scheme.
Scheme for Special Assistance to States for Capital ExpenditureInvestment: A scheme by the Union Government to provide financial resources for capital expenditure and investment to states.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
LOK SABHA
UNSTARRED QUESTION NO. 2342
TO BE ANSWERED ON MONDAY, 4th AUGUST, 2025
SRAVANA 13, 1947 (SAKA)
FUNDS FOR CENTRAL SPONSORED SCHEMES IN WEST BENGAL
2342. Smt. Rachna Banerjee
Will the Minister of Finance be pleased to state:
(a) whether the Government is aware regarding issue of the timely release of funds for
centrally sponsored schemes in West Bengal i.e. MGNREGA, Pradhan Mantri Awas
Yojana, etc.;
(b) the steps taken/to be taken by the Government to ensure transparent, timely and
uninterrupted disbursement of these funds;
(c) the financial incentives, tax benefits or special package targeted by the Government to
attract large-scale industrial investment to West Bengal; and
(d) the manner in which it will facilitate a more conducive business environment in the State?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) and (b) In the last three years i.e. from financial year (FY) 2022-23 to FY 2024-25, an
amount of Rs. 33,543 crore has been released to West Bengal as central share of Centrally
Sponsored Schemes (CSS). The release of central share of a CSS to a state is dependent upon
compliance of the conditions stipulated in the extant scheme guidelines and utilization of the
funds released earlier.Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) is
a demand - driven wage employment scheme. As per the provisions of the Mahatma Gandhi
NREG Act, 2005, it is the responsibility of the State Government to ensure transparency and
accountability in the implementation of the scheme. In the case of the State of West Bengal,
based on central teams’ inspection reports highlighting the implementation issues such as
financial misappropriation, execution of non-permissible activities, splitting of works, lack of
transparency & accountability, the Ministry of Rural Development sent several communications
to the State for rectification of the same. However, no noticeable improvements were observed.
Consequently, release of funds to the State of West Bengal has been stopped since March 9,
2022, under Section 27 of the Act due to non- compliance with Central Government directives.
Further, Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) was implemented w.e.f. 1st April
2016 to provide assistance to eligible rural households for construction of Pucca houses with
basic amenities to achieve the objective of "Housing for All" in rural areas. The Ministry of
Rural Development has allocated total targets of 45,69,423 to the state and state has sanctioned
45,69,032 houses and 34,19,432 houses have been completed as on date. The Ministry of Rural
Development has already released ₹25,798 crore as central share since FY 2016-17 till FY 2021-
22 to the State of West Bengal for implementation of the PMAY-G. However, post allocation of
target to the State from the finalised Awaas Plus 2018 survey lists in November 2022, complaints
regarding irregularities in implementation of PMAY-G were received. These complaints were
verified through National Level Monitoring (NLM) Teams and Senior Officers’ Teams.
No Central share of funds have been released to the State of West Bengal under the PMAY-G,
during FY 2022-23 to FY 2025-26 (till date) for targets of FY 2022-23 from the finalized Awaas
Plus 2018 survey lists due to non-submission of satisfactory Action Taken Reports (ATR) on the
observations of the NLM teams and Senior Officers' Teams of the Ministry of Rural
Development.
(c) and (d) Besides the funds released under CSS, the Union Government also provides
substantial financial resources for capital expenditure / investment to create more conducive
business environment to all states including State Government of West Bengal under the Scheme
for Special Assistance to States for Capital Expenditure/Investment. An amount of Rs. 23,073
crore has been released to West Bengal since inception of the scheme in FY 2020-21 to FY
2025-26 (till 28th July, 2025).
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