Centre makes record payments under rural employment in FY21

File image: People working under the Mahatma Gandhi National Rural Employment Guarantee Scheme

The Centre made record payments to workers enrolled in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the first eight months of FY21, amid the coronavirus pandemic.

According to a report by the Hindustan Times, this has left the central government with just 10 percent of the budgetary allocation for it to spend in the last four months.

The Ministry of Rural Development manages MGNREGS and was allocated Rs 84,900 crore in two instalments for the financial year ending March 2021. The ministry had already spent Rs 76,800 crore in the April-November period when enrolments under MGNREGS picked up. About Rs 50,000 crore were spent during the same period in FY20.

The news report cited a finance ministry official as saying that there would be no shortage of funds for MGNREGS as additional amounts would be provided when required.

Of the 365 days in a year, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) guarantees a minimum 100 days of employment to every willing household, within 15 days of making such a requisition. A failure to provide employment within 15 days from the date of requisition had to be compensated through an unemployment allowance.