Outlay for MGNREGA: Ministry Seeks Additional Rs.25000 Crore for Rural Jobs Scheme

The Centre proposes to spend an additional Rs.12000 crore on government schemes such as the Mahatma Gandhi National Rural Employment Guarantee (Mgnrega). 

 The rural employment guarantee scheme will necessitate additional funds beyond the upwardly revised Rs.98000 crore in the Budget presented on February 1. 

According to the finance ministry estimates, the scheme may require an additional Rs.8000-9000 crore. The ministry also anticipates an increase in outflows from fertilizer subsidies and the Department of Food and Public Distribution. 

Officials, however, stated that these additional expenditures were well within the acceptable range and will be limited to Rs.12000 crore. 

"Some schemes may need more than RE (revised estimate). However, they will be less than Rs.12000 crore, and if necessary, we may use the contingency fund "According to a top finance ministry official. 

Article 267 of the Indian Constitution requires the establishment of a corpus under the Contingency Fund of India to cope with any emergency situation. 

In the last Union Budget, the government enhanced the Contingency Fund from Rs.500 crore to Rs.30000 crore through the Finance Bill 2021, keeping in view the pandemic. 

Another official stated that any increased allocation would be scrutinized for its use. 

Officials previously reported that 19 states have overshot the expenditure on the rural employment guarantee scheme for the current fiscal year, bringing the total expenditure on the scheme to 102.39 % as of February 21. Other states have also asked the Centre to provide more funds, citing increased demand. 

In the revised estimates, the Centre increased the funding for Mgnrega from Rs.73000 crore to Rs.98000 crore for 2021-22. The total expenditure for 2020-21 was Rs 1.11 lakh crore. Finance minister Nirmala Sitharaman has maintained that allocation for the scheme will be increased “if demand arises “.