Executive Summary:
This document is a response to Lok Sabha Unstarred Question No. 403 regarding the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It addresses the withholding of funds to West Bengal since March 9, 2022, details of funds released to various states over the last three years (2022-23 to 2024-25), and the status of fund utilization and pending claims by states.
Key Points / Main Content:
West Bengal Funding:
* Funds to West Bengal have been stopped since March 9, 2022, under Section 27 of the Mahatma Gandhi NREG Act, 2005, due to non-compliance with Central Government directives regarding transparency and accountability.
* The Ministry sent communications to West Bengal for rectification of issues like financial misappropriation and execution of non-permissible activities, but no noticeable improvements were observed.
Fund Release Details:
* Annexure provides State/UT-wise details of funds released under MGNREGS from FY 2022-23 to 2024-25.
* MGNREGS is a demand-driven wage employment scheme.
* Fund release to States/UTs is a continuous process based on agreed Labour Budget, demand for works, opening balance, pace of utilization, pending liabilities, overall performance, and submission of relevant documents.
Fund Utilization and Pending Claims:
* As of the document date, Rs 44,323 Crore has been released to States in the current Financial Year, including full pending wage liabilities and 50% of material liabilities from the previous financial year.
* There are no pending wage liabilities for FY 2024-25.
* Wage payments are made directly to beneficiaries through Direct Benefit Transfer (DBT).
Impact Analysis:
State Governments:
* Impact: Required to ensure transparency and accountability in MGNREGS implementation. Need to address any issues raised by central teams to avoid fund withholding.
* Action Required: Rectify implementation issues like financial misappropriation, ensure compliance with Central Government directives, and submit relevant documents for fund release.
Ministry of Rural Development:
* Impact: Responsible for monitoring the implementation of MGNREGS and ensuring funds are released based on demand and compliance.
* Action Required: Continue to assess state performance, release funds periodically based on established criteria, and address any instances of non-compliance.
Beneficiaries (MGNREGS Workers):
* Impact: Timely wage payments are ensured through Direct Benefit Transfer (DBT).
* Action Required: Ensure their bank accounts are active and linked for DBT to receive wage payments directly.
Key Entities Referenced
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A demand-driven wage employment scheme implemented by the Ministry of Rural Development, Government of India.
West Bengal: A state in India where the release of funds under MGNREGS has been withheld.
Ministry of Rural Development: The central government ministry responsible for implementing the MGNREGS scheme.
Mahatma Gandhi National Rural Employment Guarantee Act, 2005: The legal framework that governs the MGNREGS scheme.
Section 27 of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005: The section of the MGNREGA Act under which funds to West Bengal were stopped due to non-compliance with Central Government directives.
SHRI AZAD KIRTI JHA: Member of LOK SABHA who raised a question regarding withholding of funds under MGNREGS.
SHRI KAMLESH PASWAN: Minister of State in the Ministry of Rural Development who provided the answer to the question.
Direct Benefit Transfer (DBT): A mode of payment used by the Central Government to directly transfer wages into the accounts of beneficiaries.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO. 403
ANSWERED ON 22/07/2025
WITHHOLDING OF FUNDS UNDER MGNREGS
403. SHRI AZAD KIRTI JHA:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether the release of funds under Mahatma Gandhi National
Rural Employment Guarantee Scheme (MGNREGS) for the State
of West Bengal has been withheld since 9th March 2022, if so,
the reasons therefor;
(b) the details of funds released under MGNERGS during the last
three years, State-wise with special reference to the State of
West Bengal;
(c) whether there is under-utilization of funds by various States
and if so, the details thereof, State-wise; and
(d) the details of pending claims submitted by States for the
release of funds for the year 2024-25?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(SHRI KAMLESH PASWAN)
(a): As per the provisions of the Mahatma Gandhi NREG Act, 2005,
it is the responsibility of the State Government to ensure
transparency and accountability in the implementation of the
scheme. In case of the State of West Bengal, based on central
teams’ inspection reports highlighting the implementation issues
such as financial misappropriation, execution of non-permissible
activities, splitting of works, lack of transparency & accountability,
the Ministry had sent several communications to the State for
rectification of the same. However, no noticeable improvements
were observed. Consequently, release of funds to the State of West
Bengal has been stopped since March 9, 2022, under Section 27 of
the Act due to non compliance with Central Government directives.
Page 1 of 4(b): Mahatma Gandhi National Rural Employment Guarantee
Scheme (Mahatma Gandhi NREGS) is a demand driven wage
employment scheme. State/Union Territory (UT)-wise details of
funds released under the scheme from the financial years 2022-23
to 2024-25 are given at Annexure.
(c)& (d): Mahatma Gandhi NREGS is a demand driven wage
employment Scheme. Under the scheme, States/UTs furnish fund
release proposals to the Government of India. Fund release under
the scheme 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
employment 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 full pending
wage liabilities and 50% of Material Liabilities of the previous
financial year. Accordingly, as on date there is no pending wage
liability of FY 2024-25. Payment of wages is done by Central
Government directly into the accounts of the beneficiaries through
Direct Benefit Transfer (DBT) mode.
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Page 2 of 4Annexure
Annexure referred to in reply to part (b) of LokSabhaUnstarred
Question No. 403 dated 22.07.2025
State/Union Territory (UT)-wise details of funds released under Mahatma Gandhi
NREGS from the financial years 2022-23 to 2024-25. (Rs. in crore)
S. No. States/UTs 2022-23 2023-24 2024-25
1 Andhra Pradesh 7989.09 7332.63 7688.29
2 Arunachal Pradesh 577.58 426.10 558.42
3 Assam 2052.35 2221.38 1923.41
4 Bihar 6395.29 6200.03 6708.48
5 Chhattisgarh 3383.55 2888.56 3338.56
6 Goa 5.12 0.88 3.70
7 Gujarat 1692.07 1801.62 1538.79
8 Haryana 373.99 476.71 587.75
9 Himachal Pradesh 1157.48 997.13 1198.06
10 Jammu and Kashmir 1050.61 920.44 1149.89
11 Jharkhand 2708.64 2916.76 2691.77
12 Karnataka 6225.28 5415.74 5694.73
13 Kerala 3818.43 3513.48 3124.29
33 Ladakh 68.93 62.64 85.98
14 Madhya Pradesh 5702.13 5871.14 6217.87
15 Maharashtra 2549.73 3034.44 4405.68
16 Manipur 1086.63 0.00 579.91
17 Meghalaya 1116.92 912.33 1151.69
18 Mizoram 538.72 506.06 608.26
19 Nagaland 897.45 637.96 285.25
20 Odisha 4638.36 4891.89 3744.64
21 Punjab 1182.13 1166.55 1328.41
22 Rajasthan 9662.99 8671.62 7572.48
23 Sikkim 92.55 111.95 96.26
24 Tamil Nadu 9706.62 12603.36 7552.80
25 Telangana 2988.68 3508.59 3807.46
26 Tripura 922.03 1043.59 1038.87
27 Uttar Pradesh 10629.01 9808.55 9699.48
28 Uttarakhand 792.84 551.66 623.47
29 West Bengal* 0.00 0.00 0.00
30 Andaman and Nicobar 9.60 0.00 4.44
31 Lakshadweep 0.00 0.00 0.32
32 Puducherry 24.95 58.77 40.56
33 Dadra and Nagar Haveli 1.62 2.21 9.02
Total 90041.39 88554.76 85058.99
*As per provisions under Section 27 of Mahatma Gandhi National Rural
Employment Guarantee Act, 2005 due to non-compliance of directives of Central
Government, funds to the State of West Bengal have been stopped since 09th
March, 2022.
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