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| Employment concerns and Scope of Expenditure | | | Vijay Garg | 7/20/2025 10:53:00 PM |
| MNREGA has been considered absolutely different from all other schemes in the country in the financial case. The scheme was initially run by the name NREGA,” which was made to MNREGA in two October, 2009. The scheme has been in great limelight for the past few days, which has led to a policy change made from and from the Union Finance Ministry. This has also led to the ambit of financial spending limit like MGNREGA now other schemes. MGNREGA means ‘Mahatma Gandhi National Rural Employment Guarantee Act’. This is the world’s largest employment guarantee scheme. This is called a demand based plan. Demand i.e. every one that rural family whose adult members are voluntarily willing to do unskilled physical work can find work by seeking employment for at least hundred days in a financial year. Demand simply implies that employment will be given and paid when needed. Indent will be entitled to get unemployment allowance from the State Governments if employment is not available within fifteen days of being demanded. Unemployment allowance will be one-fourth of minimum wages for initial thirty days and half of the minimum wages for a subsequent period. There should be a minimum of one-third female beneficiary giving preference to half the population in the task as per rules. employment will be provided within a radius of five kilometres. If it is more than five kilometers, additional wages will be paid. Reimbursement is also arranged when workers are victims of accident at workplace. In addition, in the event of death or permanent disablement at the workplace, an ex-gratia amount is also provided. MGNREGA mixes the total with so many merits and makes it morally binding to the government to give work to the needy, which can cross the financial scope, so it is also a law with a plan. But, now the Union Finance Ministry has also stepped up to bind the scheme with monthly or quarterly (MAP/QFP) expenditure. The monthly or quarterly expenditure was introduced by the Central Government in the year 2017, which is aimed at hardening corporatisation of government departments on its expenditure and ensuring that the expenditure goes in line with budgetary provisions. MGNREGA has also now been fixed a limit line of spending of Rs. 6,000 crore in the first half of FY 2025 2026 for the first time in order to run under monthly or quarterly expenditure, a maximum of sixty percent i.e. Rs. 51,600 crore is pending by 28.47% of the total budget of the scheme till June eight, 2025, while the financial year 2024 crore is pending The Ministry of Rural Development initially demanded more expenditure and opposed this new arrangement before the monthly or quarterly expenditure limit was imposed, but the Ministry of Finance rejected the demand of the Union Ministry of Rural Development by arresting better management of cash flow and avoiding unnecessary borrowings. With regard to delayed payment it is worth noting that there is a provision for remuneration to be paid within fifteen days under the MGNREGA Act. Section 3(3) of the Act clearly mentions that the distribution of daily wages cannot be done after a fortnight from that date in any case, but the fine reversal of provisions have been made in several states from months to MNREGA Other liabilities including payment are lying pending under. For all these reasons, payment of Rs. 21,000 crore is pending for the last financial year 2024 2025. It is noteworthy that when MNREGA was launched in the year 2006, it was implemented only in the country’s mere 200 janapadas in the first phase. Later in view of its success in the financial year 2008-2009, it was implemented all over the country leaving a hundred percent urban areas. The main objective of the scheme is to reduce migration from rural areas, ensure employment of unskilled workers, promote rural purchasing power, reduce the distinction of poverty and amiri in villages, create villages temporary and permanent assets. The financial has also managed to a great extent in these objectives, consequently during the year 2020 2021 -2021 in the Corona period when migration started towards villages instead of cities, MNREGA stood as a troublemaker for unskilled workers. At that time Recard 7.55 crore families benefited from the scheme, while only 5.79 crore families received the benefit in the financial year 2024 2025.” Surprisingly, despite having enough budget and time-payment provisions for ‘decades. This scheme has been running across the country, yet how were the liabilities of Rs. 21,000 crore stuck? The Finance Ministry argues that MNREGA has also been included in the scope of monthly or quarterly expenditure, like all schemes, to address all these discrepancies. The Finance Ministry believes the move will pressurise the states to pay within the stipulated time frame and reduce liabilities, but the theme of the debate between Panchayat representatives and policy, Riti’s inputs is how the default budget will be able to reimburse economic when MGNREGA is a demand-based plan, seeking more work. Probably this is the first such scheme, which is going to run from genocide and bottom to top.
The demand comes from lower level i.e. Gram Panchayats, why should it be tied with sixty% expenditure? Panchayat representatives are concerned about how employment will be given if demand for employment comes from binding MNREGA in Kharche, large amount of pending dues from the new system went into old payment as a result new job creation prospects may be reduced. In such a situation, the government should now make proper arrangements for speedy settlement of pending liabilities for resumption of trust of unskilled all personnel related to Panchayat representatives, workers and MNREGA to facilitate further road and some concrete strategy to not go on such dues in future.
The Union Ministry of Rural Development establishes better coordination with the states, making the task easier, spending control based on ground realities and transparency and firm. The extent of the expenditure may have been fixed by the government retaining the basic framework of MGNREGA, i.e. demand-based provision, but there should be an arrangement to release the funds immediately if required, which will allow every needy to work at the right time and price.
Vijay Garg Retired Principal Educational columnist Eminent Educationist street kour Chand MHR Malout Punjab
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