Executive Summary:
This document addresses Lok Sabha Starred Question No. 34 regarding pending dues under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as of July 22, 2025. It details the central share pending for disbursement to States/UTs, reasons for delays, and impact on MGNREGS implementation. The document outlines measures taken by the government to ensure timely fund release.
Key Points / Main Content:
* **Scheme Overview:** MGNREGS is a demand-driven wage employment scheme where States/UTs submit fund release proposals.
* **Fund Release Process:**
* The Central Government releases funds to States/UTs in two tranches based on agreed-to Labour Budget, demand for works, opening balance, fund utilization, pending liabilities, overall performance, and document submission.
* ₹44,323 Crore has been released in the current financial year, including pending liabilities from the previous year.
* **Wage Payment:** Wage payments are made directly to beneficiaries via Direct Benefit Transfer (DBT) through the Public Finance Management System (PFMS).
* **Expenditure Sharing:** The Central Government bears 100% of wage and administrative component costs, and 75% of material component costs, with the remaining 25% borne by States/UTs.
* **Addressing Fund Shortages:** The Ministry seeks additional funds from the Ministry of Finance as needed.
* **Measures for Timely Fund Release:**
* **PFMS:** Monitors fund transfer and utilization in real-time.
* **DBT:** Ensures timely wage payments via Aadhaar-linked bank accounts.
* **Standard Operating Procedure (SOP):** Defines fixed timelines for each stage of the wage payment process.
* **Capacity Building:** Workshops and training programs for field functionaries.
* **Regular Reviews:** Continuous monitoring with stakeholders like banks, States/UTs, PFMS, and NICDRD.
* **Pending Liabilities (as of 16.07.2025):** State/UT-wise details of pending liabilities for wage and material components are provided in Annexure I.
Impact Analysis:
* **States and Union Territories (UTs):**
* Impact: Timely receipt of funds is crucial for implementing MGNREGS works, paying wages, and managing material costs. Delays can affect rural livelihood security and employment generation.
* Action Required: Submit fund release proposals with all relevant documents, efficiently utilize funds, and adhere to the SOP for wage payments.
* **MGNREGS Workers:**
* Impact: Timely wage payments are essential for their livelihood security.
* Action Required: Ensure Aadhaar-linked bank accounts are active for DBT.
* **Central Government (Ministry of Rural Development):**
* Impact: Responsible for ensuring timely fund release and monitoring the implementation of MGNREGS.
* Action Required: Continue using PFMS, DBT, and SOP to streamline fund transfers, conduct regular reviews, and provide capacity building for field functionaries.
Key Entities Referenced
Mahatma Gandhi National Rural Employment Guarantee Scheme: A demand-driven wage employment scheme, also referred to as MGNREGS or Mahatma Gandhi NREGS.
Ministry of Rural Development: The Government of India ministry responsible for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
SHRI SHIVRAJ SINGH CHOUHAN: The Minister of Rural Development.
Public Finance Management System: A platform (PFMS) used to monitor and ensure efficient and timely transfer of funds to the States and Union Territories.
Direct Benefit Transfer: A method (DBT) for paying wages directly into the Aadhaar-linked bank accounts of beneficiaries.
Karnataka: A state in India with pending wage and material liabilities under MGNREGS.
Kerala: A state in India with pending wage and material liabilities under MGNREGS.
Bihar: A state in India with pending wage and material liabilities under MGNREGS, specifically mentioning Saran district.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
STARRED QUESTION NO. 34
ANSWERED ON 22/07/2025
PENDING DUES UNDER MGNREGS
*34. SHRI E TUKARAM:
SHRI RAJIV PRATAP RUDY:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) the details and total amount of Central share pending for
disbursal to States and Union Territories (UTs) under the
Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) and the duration for which the amount
remained pending/unpaid along with the reasons therefor,
State and district-wise;
(b) the details of States and UTs having pending wage and
material liabilities under MGNREGS including the total amount
to be released/disbursed by the Union Government as of June
2025, State and district-wise including Karnataka, Kerala and
Bihar particularly of Saran district of Bihar;
(c) whether the delay in fund release has affected the
implementation of MGNREGS works and wage payments to
workers in various States, if so, the details thereof, State and
district-wise including Kerala and Bihar;
(d) the reasons for delay in disbursal of funds to States and the
impact of such delays on rural livelihood security and
employment generation, State-wise including Kerala and Bihar
particularly of Saran district; and
(e) the corrective measures taken by the Government to ensure
timely release of funds under MGNREGS?
ANSWER
MINISTER OF RURAL DEVELOPMENT
(SHRI SHIVRAJ SINGH CHOUHAN)
(a) to (e): A statement is laid on the Table of the House.
Page 1 of 4STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK
SABHA STARRED QUESTION NO. 34 FOR 22.07.2025.
(a)to (d): Mahatma Gandhi National Rural Employment Guarantee
Scheme (Mahatma Gandhi NREGS) is a demand driven wage
employment Scheme. Under Mahatma Gandhi NREGS, States/UTs
furnish fund release proposals to the Government of India. Under
the scheme, fund release to States/UTs is a continuous process and
the Central Government is committed to making funds available to
States/UTs for the implementation of the Scheme as per the demand
for work on the ground.
The Ministry 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, so far an amount of Rs
44,323 Crore has been released to the States including the pending
liabilities of the previous year. Payment of wages is done by Central
Government directly into the accounts of the beneficiaries through
Direct Benefit Transfer (DBT) mode. 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 after following the due procedures, the fund release
status keeps updating on a daily basis.
State/UT-wise (including Karnataka, Kerala and Bihar) details
of central share due for wage and material component
under Mahatma Gandhi NREGS as on 16.07.2025 are given at
Annexure-I.
Under the provision of the scheme, 100% of expenditure of the
wage and administrative component is borne by the Central
Government. Where as 75% of the expenditure under material
component is borne by central Government and 25% is shared by
the States/UTs. Funds under material and admin components are
released to the State Government and the State Government further
releases the funds to its Districts accordingly. The government of
India does not release material funds directly to the Districts.
Page 2 of 4(e): The Ministry seeks additional funds under Mahatma Gandhi
NREGS from the Ministry of Finance as and when required for
meeting the demand for work on the ground.
The following measures have been undertaken to ensure the regular
transfer of funds to States and the timely release of funds to
implementing agencies:
1. Public Financial Management System (PFMS): The government
is using the PFMS platform to monitor and ensure the efficient
and timely transfer of funds to the States & UTs. This system
helps in real time tracking of the fund flow and its utilization.
2. Direct Benefit Transfer (DBT): Wages under Mahatma Gandhi
NREGS are paid directly into the Aadhaar linked bank
accounts of beneficiaries through Aadhaar Based Payment
System (ABPS), following the DBT protocol. This minimizes
delays and ensures timely payments.
3. In order to ensure timely wage payments, the Government of
India has issued a comprehensive Standard Operating
Procedure (SOP) to all States/UTs, which defines fixed
timelines for each stage of the wage payment process-from
muster roll uploading to FTO approval.
4. Capacity building of the field functionaries: Workshops and
training programmes are conducted by the Ministry for the
field functionaries to enhance their skills and support them in
handling the financial systems.
5. Regular Reviews: Continuous monitoring through review
meetings with different stakeholders such as banks,
States/UTs, PFMS, NIC-DRD is done by the Ministry.
*****
Page 3 of 4Annexure-I
Annexure referred to in reply to part (a) of LokSabha Starred
Question No. 34 dated 22.07.2025
State/UT-wise details of pending liabilities for wage and material
component under Mahatma Gandhi NREGS as on 16.07.2025 (Rs. in
crore)
Sl. No. State/ UT Pending Dues
1 Andhra Pradesh 2864.31
2 Arunachal Pradesh 100.57
3 Assam 305.49
4 Bihar 1680.13
5 Chhattisgarh 99.77
6 Goa 0.19
7 Gujarat 83.70
8 Haryana 45.12
9 Himachal Pradesh 107.11
10 Jammu & Kashmir 272.60
11 Jharkhand 354.84
12 Karnataka 374.80
13 Kerala 377.57
14 Madhya Pradesh 870.94
15 Maharashtra 1250.84
16 Manipur 161.00
17 Meghalaya 130.35
18 Mizoram 3.44
19 Nagaland 32.84
20 Odisha 158.76
21 Punjab 331.48
22 Rajasthan 1687.39
23 Sikkim 18.95
24 Tamil Nadu 464.01
25 Telangana 939.47
26 Tripura 30.79
27 Uttar Pradesh 1765.15
28 Uttarakhand 76.85
29 Andaman & Nicobar 0.00
30 Lakshadweep 0.00
31 Puducherry 13.73
32 Ladakh 1.75
33 Dadra & Nagar Haveli & Daman & Diu 0.00
*****
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