**Executive Summary:**
This document is the response of the Minister of Rural Development to questions raised in Lok Sabha regarding the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The response addresses concerns about fund releases, budget allocation trends, and the possibility of winding up the scheme. The statement was presented on July 22, 2025, and provides details on fund allocation, budget provisions, and the government's commitment to the scheme.
**Key Points / Main Content:**
* **Fund Release:**
* MGNREGS is a demand-driven wage employment scheme.
* Wage payments are directly credited to beneficiaries via Direct Benefit Transfer.
* Fund releases for Material and Admin components are made to States/UTs based on proposals, Labour Budget, demand for works, fund utilization, and submission of relevant documents.
* As of July 17, 2025, ₹44,323 crore has been released to States/UTs for wage, Material, and Admin components in the financial year 2025-26.
* **Budget Allocation:**
* The budget allocation for the financial year 2024-25 was ₹86,000 crore, the highest ever at the Budget Estimate stage since inception.
* The allocation for the financial year 2025-26 remains at ₹86,000 crore.
* The Ministry of Rural Development monitors employment demand and seeks additional funds from the Ministry of Finance as needed.
* **Future of the Scheme:**
* There is no proposal to wind up the MGNREGS scheme.
* Efforts are being made to strengthen the scheme's implementation to achieve its objectives, including guaranteed employment, asset creation, livelihood enhancement, social inclusion, and strengthening Panchayat Raj institutions.
**Impact Analysis:**
**States/Union Territories:**
* *Impact:* States/UTs are impacted by the fund release mechanism, which depends on their ability to furnish fund release proposals, utilization of funds, and submission of relevant documents.
* *Action Required:* States/UTs need to submit fund release proposals and relevant documents to the Central Government to receive funds for Material and Admin components.
**Beneficiaries:**
* *Impact:* Beneficiaries are directly impacted by the continued implementation of the MGNREGS, which provides guaranteed wage employment.
* *Action Required:* No direct action is required from beneficiaries.
**Ministry of Rural Development:**
* *Impact:* The Ministry is responsible for monitoring the demand for employment, allocating funds, and strengthening the implementation of the scheme.
* *Action Required:* The Ministry needs to continue monitoring employment demand, seek additional funds when necessary, and improve the scheme's implementation at the ground level.
Key Entities Referenced
Ministry of Rural Development: The Indian government ministry responsible for rural development programs.
Lok Sabha: The lower house of the Indian Parliament, where the starred question was addressed.
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A demand-driven wage employment scheme in India that guarantees 100 days of wage employment to rural households.
SHRI SELVAGANAPATHI T.M.: Member of Parliament who raised the starred question regarding MGNREGS.
SHRI SHIVRAJ SINGH CHOUHAN: Minister of Rural Development, who answered the starred question in Lok Sabha.
Direct Benefit Transfer: A mechanism used by the Central Government to directly credit wage payments to the accounts of beneficiaries under the MGNREGS scheme.
Ministry of Finance: The Indian government ministry responsible for the country's finances and budget.
Panchayat Raj institutions: Local self-government institutions at the village or small town level in India.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
STARRED QUESTION NO. 32
ANSWERED ON 22/07/2025
NON-RELEASE OF FUNDS UNDER MGNREGS
*32. SHRI SELVAGANAPATHI T.M.:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether it is a fact that many State Governments have raised a
concern with regard to non-release of funds under Mahatma
Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) by the Union Government, if so, the details thereof;
(b) whether budget allocation to MGNREGS has been showing a
steady decrease over the years, if so, the details thereof; and
(c) whether the Government is considering to wind up the said
scheme and if so, the reasons therefor?
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 3STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK
SABHA STARRED QUESTION NO. 32 FOR 22.07.2025.
(a): Mahatma Gandhi National Rural Employment Guarantee
Scheme (Mahatma Gandhi NREGS) is a demand driven wage
employment Scheme. Under the Scheme wage payments are
directly credited by the Central Government to the account of
beneficiaries through Direct Benefit Transfer protocol.
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.
In the current financial year 2025-26 (as on 17.07.2025) an amount
of Rs. 44,323 crore has been released to the States/Union
Territories, which includes funds for wage, Material and Admin
components under Mahatma Gandhi NREGS.
(b): Regarding budget allocation for Mahatma Gandhi NREGS it is
submitted that, for the financial year 2024-25, budget allocation of
₹86,000 crore has been made, which was the highest ever
allocation for scheme at the Budget Estimate (BE) stage since
inception. In the financial year 2025-26, the Government has
retained this allocation at ₹86,000 crore, ensuring continued
support for rural employment.
Here it is also submitted that keeping in view demand driven nature
of the Scheme, the Ministry of Rural Development closely monitors
demand for employment at ground level and seeks additional funds
from the Ministry of Finance as and when required.
(c): There is no such proposal. In fact, continuous efforts are being
made to strengthen the implementation of the scheme at the ground
level so that the core objectives of the Scheme such as providing
guaranteed employment resulting in creation of productive assets of
prescribed quality and durability, strengthening livelihood resource
base of the poor, proactively ensuring social inclusion and
strengthening Panchayat Raj institutions are achieved.
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