Maharashtra's Rural Employment Spending Soars with New Legislation

The proposed national rural job guarantee law in Maharashtra could lead to a six-fold increase in expenditure on rural employment, up to Rs 6,000 crore. The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission Bill, 2025, may strain state finances, but promises economic benefits through increased workdays and new projects.

The state of Maharashtra is anticipating a substantial rise in its rural employment expenditure, projected to soar six-fold to Rs 6,000 crore with the impending passage of a national rural job guarantee law. Officials disclosed that the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission Bill, 2025, is set to significantly impact state finances, exacerbated by existing populist schemes.

The proposed law will require Maharashtra to cover at least a 40% share of a total estimated national requirement of Rs 1,51,282 crore. This will mean the state's annual spending on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) programs may leap from the current Rs 900 crore to accommodate the added resource strain.

Despite the financial challenges, officials highlight beneficial aspects of the bill, such as increasing guaranteed workdays from 100 to 125 and incorporating new types of projects like road and bridge construction, which could lessen some existing fiscal burdens. Maharashtra Chief Minister Devendra Fadnavis insists the state maintains economic robustness despite financial constraints.

(With inputs from agencies.)