Home India National Bank For Agriculture and Rural Development Parliament Question: Pending Payments under MGNREGS...
Date: 2025-07-29 Category: Not Applicable State: Union Government Country: India

Parliament Question: Pending Payments under MGNREGS

Issued by National Bank For Agriculture and Rural Development · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document presents the Ministry of Rural Development's response to questions regarding the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It addresses pending payments, reasons for delays, reforms for timely disbursement, employment statistics in Rajasthan, and potential wage increases. The data provided is current as of July 24, 2025, with financial year data pertaining to 2024-25. Key Points / Main Content: Financials and Payments: * As of 24.07.2025, Rajasthan has received Rs. 3,312.60 crore for wages, material, and administrative components in the current financial year (2025-26). * As of 24.07.2025, Rajasthan has pending liabilities of Rs. 561.28 crore for wage payments and Rs. 827.87 crore for the material component for FY 2024-25. * Wage payments are directly credited to beneficiaries via Direct Benefit Transfer (DBT). * Material funds are released by the Central Government to State Governments, who then distribute to districts. Timely Payment and Reforms: * Beneficiaries are entitled to wage payments within 15 days of work completion. * The Government of India has issued a Standard Operating Procedure (SOP) to ensure timely payments. * Reforms include the National Electronic Fund Management System (NeFMS), Direct Benefit Transfer (DBT), Aadhaar Payment Bridge System (APBS), and National Mobile Monitoring System (NMMS). * Delay compensation is mandated at 0.05% of unpaid wages per day of delay beyond 16 days after muster roll closure, as per the Mahatma Gandhi NREGA, 2005. Employment Statistics (Rajasthan, FY 2024-25): * District-wise data on registered workers, workers who demanded employment, and workers who availed employment is provided in Annexure I. * District-wise data on households completing 100 days of employment is provided in Annexure II. * A total of 231.77 lakh workers were registered, 84.08 lakh demanded employment, and 77.23 lakh availed employment. * A total of 5,11,216 households completed 100 days of employment. Wage Rate: * The Central Government notifies the MGNREGA wage rate annually, effective from April 1st, based on the Consumer Price Index for Agricultural Labour (CPIAL). * Wage rates have increased by approximately 5% on average over the last year and around 29% on average in the previous 5 years. * State Governments can provide wages exceeding the Central Government-notified rate from their own resources. Impact Analysis: Beneficiaries (MGNREGS Workers): * Impact: Entitled to timely wage payments and delay compensation. Wage rates are revised annually to compensate for inflation. * Action Required: Ensure Aadhaar details are linked for APBS, record attendance accurately via NMMS, and report any payment delays. State Governments: * Impact: Responsible for proposing fund releases, distributing material funds to districts, and paying delay compensation. * Action Required: Furnish fund release proposals, generate pay orders in a timely manner, verify and pay delay compensation, and implement the SOP for wage payments. Central Government (Ministry of Rural Development): * Impact: Responsible for fund releases, monitoring timely payments, and revising wage rates. * Action Required: Issue sanctions for wage payments through PFMS, monitor timely payment and delay compensation, and notify revised wage rates annually.

Key Entities Referenced

Mahatma Gandhi National Rural Employment Guarantee Scheme: A demand-driven wage employment scheme, also referred to as Mahatma Gandhi NREGS or MGNREGS, aimed at enhancing livelihood security of households in rural areas of India by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. Rajasthan: A state in India where pending wages and material payments under MGNREGS are being examined. Ministry of Rural Development: The Indian government ministry responsible for implementing and overseeing rural development programs, including MGNREGS. Shri Ummeda Ram Beniwal: Member of Parliament who raised a question in Lok Sabha regarding pending payments under MGNREGS. Shri Kuldeep Indora: Another Member of Parliament who raised a question in Lok Sabha regarding pending payments under MGNREGS. Public Finance Management System: A system (PFMS) used by the Ministry of Rural Development for issuing sanctions for wage payments under MGNREGS. Direct Benefit Transfer: A mechanism (DBT) used to directly credit wage payments to the accounts of MGNREGS beneficiaries. Aadhaar Payment Bridge System: A payment system (APBS) where benefits are directly credited into bank accounts based on the Aadhaar of the workers under Mahatma Gandhi NREGS.
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O.I.H. GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT LOK SABHA UNSTARRED QUESTION NO. 1488 ANSWERED ON 29/07/2025 PENDING PAYMENTS UNDER MGNREGS 1488. Shri Ummeda Ram Beniwal: Shri KuldeepIndora: Will the Minister of RURAL DEVELOPMENT be pleased to state: (a) the details of the total amount of pending wages of workers and material payments in Rajasthan under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), State and district-wise; (b) the reasons for the repeated delay in MGNREGS wage payments and the level at which its accountability is fixed, State-wise including Rajasthan; (c) whether the Government is making technical and administrative reforms to make wage disbursement timely and transparent; (d) if so, the details thereof; (e) the number of workers registered and employed under MGNREGS in Rajasthan including Sri Ganganagar and Hanumangarh, State and district-wise; (f) the number of workers applied last year and were provided 100 days of employment, State and district-wise; (g) whether the Government is considering an increase in MGNREGS wages keeping in view the rising inflation and cost of living; and (h) if so, the proposed increase and the time by which it is likely to be implemented, State-wise? ANSWER MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN) (a): Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS) is a demand-driven wage employment Page 1 of 6scheme. Under the scheme, fund release to the States/UTs is a continuous process. Wage payments are directly credited by the Central Government to the account of 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 after following due procedures. 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. The Central government releases material funds to the State Governments which in turn release the funds to its Districts. Central government does not release funds directly to the Districts. In the current Financial Year 2025-26 (as on 24.07.2025) an amount of Rs. 3,312.60 crore has been released to the State of Rajasthan for wage, material, and admin components. As on 24.07.2025, the pending liability for wage payments under the Scheme in the State of Rajasthan is Rs. 561.28 crore. Further, the pending liability for FY 2024-25 for the material component is Rs. 827.87 crore. (b)to (d): As per the provisions of the Act, beneficiaries are entitled to receive wage payments within 15 days of work completion. In order to ensure timely payment, 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. The Ministry along with the States/UTs has been making concerted efforts for improving the timely payment of wages. States/UTs have been advised to generate pay orders in time. Page 2 of 6The Ministry has taken various steps to ensure timely payment of wages to workers under (Mahatma Gandhi NREGS). These include:  Improvement of National Electronic Fund Management System (Ne-FMS)  Intensive consultation with State Governments and other stakeholders for ensuring timely payment of wages, verification of pending and delay compensation claims etc.  Formulation of Standard Operating Procedure for monitoring of timely payment and payment of delay compensation.  Reviewing the status of timely payment and payment of delay compensation with the States/ UTs during periodic meetings, Performance Review Committee meetings, Mid-term Reviews etc. Further, continued efforts have been undertaken by the Ministry through various technological interventions for ensuring timely payments of wages. Some of the key interventions include:  Direct Benefit Transfer (DBT): Wages are transferred directly from the central account to workers’ bank accounts, minimizing the role of intermediaries and reducing fund misappropriation. This has proven to be effective in enhancing transparency and preventing leakages. Almost 100% of the funds are managed electronically with the wage payment made entirely through Direct Benefit Transfer (DBT) protocol.  Aadhaar Payment Bridge System (APBS): APBS conversion is a major reform process where benefits are credited directly into the bank accounts based on the Aadhaar of the workers under Mahatma Gandhi NREGS, preferably Aadhaar Based Payments, cutting several layers in the delivery process. APBS helps in better targeting, increasing the efficiency of the system and reducing the delays in payments, ensuring greater inclusion by curbing leakages thereby promoting greater accountability and transparency.  National Mobile Monitoring System (NMMS): Real-time attendance capture through geo-tagged photographs at the worksite ensures accurate and timely recording of attendance, which helps in timely payment of wages. Page 3 of 6As per the provisions mentioned in Schedule-II of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (Mahatma Gandhi NREGA), wage seekers shall be entitled to receive payment of compensation for the delay, at the rate of 0.05% of the unpaid wages per day of delay beyond the sixteenth day of closure of muster roll. Delay compensation rules are notified by the State Government concerned. The amount due for compensation is duly verified and approved, and then paid by the State Government. (e)& (f): District-wise details of number of registered workers, number of workers who demanded employment and number of workers who availed employment in Rajasthan State under Mahatma Gandhi NREGS during the last financial year 2024-25 is given at Annexure-I. District-wise number of households who completed 100 days of employment in Rajasthan under Mahatma Gandhi NREGS during the last financial year 2024-25 is given at Annexure-II. (g)& (h): As per Section 6 (1) of Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), 2005, the Central Government may by notification specify the wage rate for unskilled work for its beneficiaries. Accordingly, the Ministry of Rural Development notifies Mahatma Gandhi NREGA wage rate for every financial year for States/UTs. To compensate the Mahatma Gandhi NREGA workers against inflation, the Ministry of Rural Development revises the wage rate every year based on change in Consumer Price Index for Agricultural Labour(CPI-AL). The wage rate is made applicable from 1st April of each financial year. Using the present methodology of wage rate calculation, the central government has notified the wage rate and it has increased by around 5% (average) over the last year and around 29% (average) in the previous 5 years. However, State Governments can provide wages over and above the wage rate notified by the Central Government from their own sources. ***** Page 4 of 6Annexure-I Annexure referred to in reply to parts (e)&(f) of LokSabhaUnstarred Question No. 1488 dated 29.07.2025. District-wise Details of number of registered workers, number of workers who demanded employment and number of workers who availed employment in Rajasthan State under Mahatma Gandhi NREGS during the last financial year 2024-25. (Figure in lakh) Number of Number of workers Number of workers SI. District of registered who demanded who availed No. Rajasthan workers employment employment 1 AJMER 8.81 4.04 3.81 2 ALWAR 5.75 1.27 1.06 3 BANSWARA 9.94 5.67 5.31 4 BARAN 6.45 2.17 1.98 5 BARMER 13.46 7.20 6.90 6 BHARATPUR 7.98 1.39 1.21 7 BHILWARA 9.67 4.95 4.63 8 BIKANER 7.94 3.33 2.89 9 BUNDI 5.75 1.61 1.45 10 CHITTORGARH 5.47 1.69 1.48 11 CHURU 7.32 2.62 2.45 12 DAUSA 3.94 0.85 0.65 13 DHOLPUR 4.09 0.60 0.51 14 DUNGARPUR 8.23 4.73 4.54 15 HANUMANGARH 6.06 2.22 2.07 16 JAIPUR 7.93 1.42 1.23 17 JAISALMER 3.14 1.90 1.82 18 JALORE 6.69 1.67 1.55 19 JHALAWAR 6.80 3.64 3.40 20 JHUNJHUNU 3.65 0.50 0.42 21 JODHPUR 12.46 3.92 3.37 22 KARAULI 4.89 1.15 0.97 23 KOTA 3.22 1.35 1.25 24 NAGAUR 13.93 5.45 5.17 25 PALI 8.81 2.26 2.03 26 PRATAPGARH 4.40 3.04 2.90 27 RAJSAMAND 4.59 1.85 1.70 SAWAI 28 MADHOPUR 5.83 0.95 0.77 29 SIKAR 5.34 0.85 0.74 30 SIROHI 4.01 1.35 1.22 31 SRI GANGANAGAR 6.11 2.79 2.56 32 TONK 6.72 1.57 1.35 33 UDAIPUR 12.38 4.11 3.85 Total 231.77 84.08 77.23 Page 5 of 6Annexure-II Annexure referred to in reply to parts (e)&(f) of LokSabhaUnstarred Question No. 1488 dated 29.07.2025. District-wise number of households who completed100 days of employment in Rajasthan under Mahatma Gandhi NREGS during the last financial year 2024-25. Number of households who completed 100 SI.No. District of Rajasthan days of employment 1 AJMER 21305 2 ALWAR 2179 3 BANSWARA 39048 4 BARAN 8052 5 BARMER 52671 6 BHARATPUR 2711 7 BHILWARA 9681 8 BIKANER 14463 9 BUNDI 3754 10 CHITTORGARH 7847 11 CHURU 10703 12 DAUSA 402 13 DHOLPUR 403 14 DUNGARPUR 62306 15 HANUMANGARH 30628 16 JAIPUR 7052 17 JAISALMER 21578 18 JALORE 12947 19 JHALAWAR 1769 20 JHUNJHUNU 3068 21 JODHPUR 16018 22 KARAULI 108 23 KOTA 3943 24 NAGAUR 26086 25 PALI 15913 26 PRATAPGARH 32447 27 RAJSAMAND 24830 28 SAWAI MADHOPUR 465 29 SIKAR 5782 30 SIROHI 19468 31 SRI GANGANAGAR 16821 32 TONK 2043 33 UDAIPUR 34725 Total 5,11,216 (As per NREGASoft) ***** Page 6 of 6

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