Government's Stagnant MGNREGS Budget Ignites Controversy

The Congress criticized the government's unchanged budget for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) despite rising rural distress. With stagnant funding at Rs 86,000 crore for 2024-26, real allocation declines when adjusted for inflation, affecting rural livelihoods and wage rates significantly.

The Congress launched a scathing attack on the government over the stagnant budget of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Despite rising rural distress, this crucial rural livelihood safety net remains underfunded at Rs 86,000 crore for 2024-26, the same allocation as for the previous year.

Jairam Ramesh, Congress general secretary in-charge of communications, highlighted that the stagnant budget effectively decreases real allocations when adjusting for inflation. A significant portion, approximately 20% of the budget, will be paid towards dues from prior years, reducing MGNREGS's reach and effectiveness.

The stagnant budget not only limits MGNREGS's impact but also precludes any meaningful wage increases for rural workers, partly attributing to the growing national crisis of wage stagnation. MGNREGS, offering 100 days of wage employment to rural households, was a critical lifeline during the 2020-21 COVID pandemic year.