Home India Ministry of Rural Development Parliament Question: Funds for States under MGNREGS...
Date: 2025-12-02 Category: Not Applicable State: Union Government Country: India

Parliament Question: Funds for States under MGNREGS

Issued by Ministry of Rural Development · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document presents the Indian government's response to questions regarding funds for states under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It covers the details of funds owed and allocated to states, including West Bengal, and addresses the timeline for restarting funding and disbursing dues to MGNREGS workers in West Bengal. The information provided is as of 26.11.2025, with historical data spanning from FY 2021-22 to FY 2024-25. **Key Points / Main Content** * **Wage Payments:** * Wage payments are directly credited to beneficiaries through Direct Benefit Transfer. * Sanctions for wage payments are issued daily through PFMS after receiving fund transfer orders from States/UTs. * All due and admissible pending wage liabilities up to FY 2024-25 have been cleared, except for West Bengal. * **Material and Admin Components:** * States/UTs must furnish fund release proposals to the Government of India. * Funds are released periodically in two tranches based on factors like Labour Budget, demand for works, and submission of relevant documents. * **Fund Release Status:** * As of 26.11.2025, Rs. 68,393.67 crore has been released to States/UTs in the current financial year (2025-26), including Rs. 57,853.62 crore for wages and Rs. 10,540.05 crore for Material and Admin. * **MGNREGS Fund Allocation:** * MGNREGS is a demand-driven wage employment scheme with no State/UT-wise allocation of funds. * State/UT-wise details of funds released under MGNREGS from FY 2021-22 to FY 2024-25 are provided in Annexure-II. * **West Bengal Funding:** * Resumption of MGNREGS implementation in West Bengal is contingent on reworking and refining modalities and procedures to comply with the Calcutta High Court's directions. * Funds to West Bengal under MGNREGS were stopped on 09.03.2022, due to non-compliance with Central Government directives. * Pending liability for West Bengal as of 08.03.2022 stands at ₹3082.52 crore, subject to verification by the Central Government. **Impact Analysis** **States/Union Territories (excluding West Bengal)** * **Impact:** These entities receive funds for wages, material, and administrative components under MGNREGS. The amount received influences their ability to provide rural employment and support related infrastructure development. * **Action Required:** States/UTs must submit fund release proposals as per guidelines to ensure timely fund disbursement. **West Bengal** * **Impact:** West Bengal faces challenges in implementing MGNREGS due to the suspension of funds and non-compliance issues. Workers in the state are affected by the delayed disbursement of dues. * **Action Required:** The West Bengal government must rework and refine its procedures to comply with the Calcutta High Court's directions and Central Government guidelines to resume funding. **MGNREGS Workers** * **Impact:** Workers across the country, especially in West Bengal, are impacted by the timely release and disbursement of wages and pending dues. * **Action Required:** MGNREGS workers in West Bengal may need to await the resolution of compliance issues before receiving their pending dues.

Key Entities Referenced

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A scheme to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. Ministry of Rural Development: The Indian government ministry responsible for implementing rural development programs, including MGNREGS. West Bengal: A state in India, specifically mentioned in relation to funding and compliance issues regarding MGNREGS implementation. Calcutta High Court: The High Court whose order is impacting the state of West Bengal's procedures with the MGNREGS scheme. Public Finance Management System (PFMS): A platform used by the Ministry to process sanctions and payments under MGNREGS.
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GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT LOK SABHA STARRED QUESTION NO. 39 ANSWERED ON 02/12/2025 FUNDS FOR STATES UNDER MGNREGS *39. Shri KalipadaSarenKherwal: Dr. Sharmila Sarkar: Will the Minister of RURAL DEVELOPMENT be pleased to state: (a) the details of amount of funds owed to States under the heads of „wages‟ and „material and admin‟ under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), component and State-wise; (b) the details of funds allocated to States under MGNREGS during each of the last four years, State-wise including West Bengal; and (c) whether the Government has fixed any timeline to restart funding under the scheme and if so, the details of timeline to disburse the dues owed to 59 lakh MGNREGS workers in Bengal? ANSWER MINISTER OF RURAL DEVELOPMENT (SHRI SHIVRAJ SINGH CHOUHAN) (a) to (c): A statement is laid on the Table of the House. Page 1 of 5STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (c) OF LOK SABHA STARRED QUESTION NO. *39 TO BE ANSWERED ON 02.12.2025REGARDING “FUNDS FOR STATES UNDER MGNREGS” (a): Under the Scheme, the wage payments are directly credited by the Central Government to the accounts of the beneficiaries through Direct Benefit Transfer protocol. Sanctions for wage payments are issued daily by the Ministry through the Public Finance Management System (PFMS) based on fund transfer orders received from the States/ UTs after following due procedures. At the beginning of each financial year, admissible pending liabilities of the previous years, if any, are duly reimbursed by the Government of India. Accordingly, all due and admissible pending wage liabilities upto FY 2024-25 have already been cleared (except in case of State of West Bengal). With regard to Material and Admin components, States/UTs are required to furnish fund release proposals to the Government of India. The Central Government releases funds periodically in two tranches with each tranche consisting of one or more installments, keeping in view the “agreed to” Labour Budget, demand for works, opening balance, pace of utilization of funds, pending liabilities, overall performance and subject to submission of relevant documents by the States/UTs. Under the Scheme, in the current financial year 2025-26 (as on 26.11.2025), an amount of Rs. 68,393.67 crore has been released to the States/Union Territories, which includes Rs.57,853.62 crore for wage component and an amount of Rs.10,540.05 crore for Material and Admin. As Sanction for payment of wages are issued by Ministry on a daily basis through PFMS (Public Finance Management System), after receipt of funds transfer orders from States/UTs after following the due procedures, the fund release status keeps updating on a daily basis. State/Union Territory (UT)-wise details of pending liabilities for Wage, Material and Admin component under Mahatma Gandhi NREGS as on 26.11.2025 are given at Annexure-I. (b): Mahatma Gandhi NREGS is a demand driven wage employment scheme. There is no State/UT-wise allocation of funds under Mahatma Gandhi NREGS. State/UT-wise (including for West Bengal), Page 2 of 5details of funds released under Mahatma Gandhi NREGS in last four financial years w.e.f. FY 2021-22 to FY 2024-25 are given at Annexure-II. (c): For the resumption of implementation of the Mahatma Gandhi NREGS in the State of West Bengal, in accordance with the Order dated 18.06.2025 passed by the Hon'ble Calcutta High Court, the department is currently in the process of reworking and refining the necessary modalities and procedures to comply with the Hon‟ble High Court‟s directions. ***** Page 3 of 5Annexure-I Annexure referred to in reply to parts (a) of LokSabha Starred Question No. 39 dated 02.12.2025. State/Union Territory (UT)-wise details of pending liabilities for wage, material and Admin component under Mahatma Gandhi NREGS as on 26.11.2025 (Rs. in crores) Sl. No. States/UTs Wage Material Admin 1 Andhra Pradesh 381.02 530.45 27.51 2 Arunachal Pradesh 4.70 142.01 0.86 3 Assam 0.23 398.38 27.73 4 Bihar 7.04 385.88 14.67 5 Chhattisgarh 3.78 101.36 9.59 6 Goa 0.00 0.43 0.02 7 Gujarat 46.98 18.96 8.39 8 Haryana 0.38 41.56 0.28 9 Himachal Pradesh 15.18 65.66 0.40 10 Jammu & Kashmir 5.48 188.50 2.31 11 Jharkhand 5.83 299.27 4.69 12 Karnataka 8.94 576.58 36.97 13 Kerala 248.42 177.80 49.72 14 Madhya Pradesh 64.14 655.03 44.06 15 Maharashtra 14.32 668.80 23.03 16 Manipur 4.59 152.40 4.12 17 Meghalaya 4.13 51.75 1.10 18 Mizoram 91.43 0.25 0.75 19 Nagaland 0.79 79.64 0.00 20 Odisha 11.76 218.06 2.11 21 Punjab 0.12 110.51 1.57 22 Rajasthan 627.33 822.31 8.75 23 Sikkim 0.10 2.40 0.02 24 Tamil Nadu 111.54 626.70 35.67 25 Telangana 0.98 495.12 7.09 26 Tripura 2.93 144.29 27.04 27 Uttar Pradesh 5.98 1007.58 90.09 28 Uttarakhand 0.41 44.99 2.94 29 Andaman & Nicobar 0.00 0.03 0.00 30 Lakshadweep 0.00 0.00 0.00 31 Puducherry 16.99 0.00 0.25 32 Ladakh 0.46 1.78 0.10 33 West Bengal ** ** ** 34 Dadra & Nagar Haveli & Daman & Diu 1.29 0.00 0.00 Total 1687.27 8008.48 431.83 Note: The data as per PFMS/MIS and Pending liability of the previous year for the material component. **The proposal for upward revision of the Labour Budget for FY 2021-22 for the State of West Bengal was not approved by the Empowered Committee, National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS), Department of Rural Development due to non-compliance with the directives issued by this Department. Subsequently, the release of funds to the State of West Bengal under the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) was stopped with effect from 09.03.2022 by invoking the provisions of Section 27 of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, owing to continued non-compliance with the directives of the Central Government by the State. As per NREGASoft, the pending liability pertaining to the State of West Bengal (as on 08.03.2022) stands at ₹3082.52 crore, comprising ₹1457.22 crore under the wage component, ₹1607.68 crore under the material component, and ₹17.62 crore under the administrative component. The admissibility of this liability is subject to verification by the Central Government. Page 4 of 5Annexure-II Annexure referred to in reply to parts (b) of LokSabha Starred Question No. 39 dated 02.12.2025. State/UT-wise (including for West Bengal), the details of funds released under Mahatma Gandhi NREGS in last four financial years 2021-22 to 2024-25 (Rs. in Crores) SI. No. States/UTs 2024-25 2023-24 2022-23 2021-22 1 Andhra Pradesh 7707.21 7353.67 8008.81 7195.81 2 Arunachal Pradesh 560.70 427.35 578.32 453.74 3 Assam 1929.70 2221.38 2056.49 2223.32 4 Bihar 6715.83 6200.03 6402.23 5407.37 5 Chhattisgarh 3354.85 2895.12 3420.39 3894.34 6 Goa 3.70 0.88 5.05 0.04 7 Gujarat 1540.54 1802.26 1694.60 1615.24 8 Haryana 590.19 477.87 373.99 723.73 9 Himachal Pradesh 1203.28 1000.96 1164.85 976.34 10 Jammu & Kashmir 1151.20 921.60 1051.00 950.14 11 Jharkhand 2705.64 2922.27 2719.03 3067.88 12 Karnataka 5709.90 5431.67 6218.59 6034.89 13 Kerala 3136.44 3532.57 3830.97 3554.85 14 Madhya Pradesh 6252.03 5891.65 5707.47 8479.09 15 Maharashtra 4420.32 3041.48 2545.89 2056.46 16 Manipur 581.99 0.95 1086.63 563.11 17 Meghalaya 1155.09 913.86 1118.77 1123.32 18 Mizoram 611.65 507.96 540.40 550.51 19 Nagaland 287.85 641.50 839.76 570.56 20 Odisha 3763.80 4906.78 4707.52 5687.28 21 Punjab 1331.61 1169.84 1182.14 1259.20 22 Rajasthan 7581.87 8683.98 9648.65 9867.75 23 Sikkim 97.57 112.19 92.71 112.79 24 Tamil Nadu 7585.49 12616.53 9745.72 9648.36 25 Telangana 3825.31 3520.87 2992.21 4116.10 26 Tripura 1041.70 1043.59 925.34 990.14 27 Uttar Pradesh 9721.48 9844.25 10650.64 8525.15 28 Uttarakhand 626.43 553.81 792.66 642.60 29 West Bengal * 0.00 0.00 1.33 7507.80 30 Andaman & Nicobar 4.44 0.00 9.60 7.68 Dadra & Nagar Haveli Daman 31 & Diu 9.02 2.21 0.00 0.00 32 Lakshadweep 0.32 0.00 24.95 0.30 33 Puducherry 40.56 58.77 69.00 13.07 34 Ladakh 85.98 62.64 1.62 59.04 Total 85333.70 88760.50 90207.30 97878.01 * Release of funds under Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) to the State of West Bengal was stopped since 09th March, 2022 as per provision of Section 27 of Mahatma Gandhi National Rural Employment Guarantee Act, 2005, due to non-compliance of directives of Central Government. ***** Page 5 of 5

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