## Policy Summary: MGNREGS Material Payment in Uttar Pradesh
This document summarizes the response provided by the Minister of State in the Ministry of Rural Development to Lok Sabha Unstarred Question No. 1599, answered on July 29, 2025, regarding outstanding payments for the material component under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in Ambedkar Nagar and Ayodhya districts of Uttar Pradesh.
The Ministry clarified that fund releases for the material component under MGNREGS are a continuous process, with funds released to States/UTs in two tranches based on agreed-upon Labour Budgets, demand for works, opening balances, fund utilization pace, pending liabilities, overall performance, and submission of relevant documents. The Central Government releases material funds to the State Government, which then distributes them to the Districts.
As of July 23, 2025, the Central Government had released Rs. 6068.58 crore to Uttar Pradesh in the current Financial Year 2025-26. This amount included full payment of pending wage liabilities and 50% of material liabilities from the previous financial year. The Ministry stated that all due and admissible material liability of the State of Uttar Pradesh up to FY 2023-24 has already been released.
The total expenditure incurred under MGNREGS in Ambedkar Nagar and Ayodhya districts is as follows (in lakh Rupees):
| District | FY 2023-24 | FY 2024-25 | FY 2025-26 (as of 24.07.2025) |
|-----------------|------------|------------|---------------------------------|
| Ambedkar Nagar | 16,902.50 | 16,750.55 | 5066.23 |
| Ayodhya | 15,584.53 | 15,491.19 | 4,830.04 |
According to NREGASoft data as of July 21, 2025, the pending liability for the material component in Uttar Pradesh is Rs. 1232.16 crore.
Key Entities Referenced
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A flagship employment scheme implemented by the Ministry of Rural Development, Government of India, that provides a legal guarantee for one hundred days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work.
Ministry of Rural Development: The Indian government ministry responsible for rural development programs, including MGNREGS.
Shri Lalji Verma: Member of Parliament who raised the question about outstanding payments under MGNREGS.
Shri Kamlesh Paswan: Minister of State in the Ministry of Rural Development who answered the question regarding MGNREGS payments.
Ambedkar Nagar district, Uttar Pradesh: A district in Uttar Pradesh where MGNREGS is implemented and for which payment details are being discussed.
Ayodhya district, Uttar Pradesh: A district in Uttar Pradesh where MGNREGS is implemented and for which payment details are being discussed.
Uttar Pradesh: The state to which funds were released under MGNREGS, and for which the expenditures of Ambedkar Nagar and Ayodhya districts are reported.
NREGASoft: Software used to monitor and manage the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO. 1599
ANSWERED ON 29/07/2025
OUTSTANDING PAYMENT UNDER MGNREGS
1599. Shri LaljiVerma:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether the payment for material head under Mahatma Gandhi
National Rural Employment Guarantee Scheme (MGNREGS) in
Ambedkar Nagar and Ayodhya districts for the financial year
2023-24, 2024-25, 2025-26 is pending, if so, the details thereof;
(b) whether the Government proposes to pay the outstanding
amount; and
(c) if so, the time by which outstanding amount paid?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(SHRI KAMLESH PASWAN)
(a)to (c): Under Mahatma Gandhi National Rural Employment
Guarantee Scheme (Mahatma Gandhi NREGS) fund release to the
States/UTs is a continuous process. For release of fund
for Material component, 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.
The Central government releases material funds to the State
Government which in turn releases the same to Districts. The
Central Government does not release material funds directly to the
Districts.
Page 1 of 2In the current Financial Year 2025-26 (as on 23.07.2025) an
amount of Rs. 6068.58 crore has been released to the State of
Uttar Pradesh, including full pending Wage Liabilities and 50% of
Material Liabilities of the previous financial year. There is no
pending liability for materiel component in respect of Uttar
Pradesh for FY 2023-24.
Total expenditure incurred under the scheme in Ambedkar
Nagar and Ayodhya districts of Uttar Pradesh during the last two
financial year and current financial year 2025-26 (as on 24.07.2025)
are given below:
Total Expenditure (Figure in lakh)
2025-26 (as on
Financial Year 2023-24 2024-25 24.07.2025)
Ambedkar Nagar 16,902.50 16750.55 5066.23
Ayodhya 15,584.53 15,491.19 4,830.04
(As per NREGASoft)
As on 21.07.2025, the pending liability for the material
component is Rs.1232.16 crore. All due and admissible material
liability of State of Uttar Pradeshupto FY 2023-24 has already been
released.
*****
Page 2 of 2