New Delhi, July 22 (IANS) In the current financial year 2025-26, an amount of Rs 44,323 crore has been released to the States/Union Territories, which includes funds for wage, material and administrative components under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the Lok Sabha was informed on Tuesday.

Sharing details related to the MGNREGS as on July 17, Rural Development Minister Shivraj Singh Chouhan said that in 2025-26, the government has retained the allocation at Rs 86,000 crore, ensuring continued support for rural employment.

In a written reply to a question by T. M. Selvaganapathy, if the government is considering winding up the scheme, the Minister said, “There is no such proposal. In fact, continuous efforts are being made to strengthen the implementation of the scheme at the ground level.”

Minister Chouhan said the core objectives of the scheme include providing guaranteed employment resulting in creation of productive assets of prescribed quality and durability, strengthening livelihood resource base of the poor, proactively ensuring social inclusion and strengthening Panchayat Raj institutions.

On the question of whether budget allocation to MGNREGS has been showing a steady decrease over the years, the Minister said that for the financial year 2024-25, budget allocation of Rs 86,000 crore has been made, the highest ever since its inception.

The Minister said that keeping in view demand driven nature of the Scheme, the Ministry of Rural Development closely monitors demand for employment at ground level and seeks additional funds from the Ministry of Finance as and when required.

Responding to Selvaganapathy’s question whether it is a fact that many state governments have raised a concern with regard to non-release of funds under the scheme by the Central government, the Minister said, “Under the Scheme, wage payments are directly credited by the Central Government to the account of beneficiaries through Direct Benefit Transfer protocol.”

Minister Chouhan said with regard to material and administrative components, States/UTs are required to furnish fund release proposals to the Central government.

“The Central government releases funds periodically in two tranches with each tranche consisting of one or more instalments, keeping in view the ‘agreed to’ Labour Budget, demand for works, opening balance, pace of utilisation of funds, pending liabilities, overall performance and subject to submission of relevant documents by the States/UT,” said the Minister.

–IANS

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