West Bengal Faces Fund Freeze: MGNREGA Dues Unpaid

The Centre owes West Bengal over Rs 3,000 crore under MGNREGA, which remains unpaid due to non-compliance with directives. Since March 2022, the state hasn't received funds, affecting wages and rural initiatives, triggering migrations. Other states also have pending dues, but less severe than West Bengal.

In a significant financial standoff, the Centre has withheld over Rs 3,000 crore owed to West Bengal under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This revelation was made in the Rajya Sabha, highlighting the largest pending dues for any state in India under this scheme.

The cessation of funds to West Bengal, which began in March 2022, has affected the payment of wages, material, and administrative costs, according to Ministry of State for Rural Development Kamlesh Paswan. This action is attributed to West Bengal's non-compliance with central directives, as per the mandate of Section 27 of MGNREGA, 2005.

The issue has raised concerns among political factions, notably the Trinamool Congress, who criticized the omission of West Bengal in government reports on pending MGNREGA liabilities. The suspension has reportedly exacerbated economic hardships, causing increased distress migration and hindering rural development projects.

(With inputs from agencies.)