New Delhi, July 22: The Central Government has disbursed ₹44,323 crore to States and Union Territories so far in FY2025-26 under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), covering wages, materials, and administrative costs, Rural Development Minister Shivraj Singh Chouhan informed the Lok Sabha on Tuesday.
In a written reply, Minister Chouhan affirmed that the scheme remains robust, with no intention of being wound up. “There is no such proposal. In fact, continuous efforts are being made to strengthen its ground-level implementation,” he stated, responding to a query from MP T. M. Selvaganapathy.
The Minister said the Centre has allocated ₹86,000 crore for the current fiscal year — matching the allocation made in FY2024-25, which was the highest since the scheme’s inception. He reiterated that the government closely monitors demand and seeks additional funds from the Ministry of Finance as necessary, reflecting the demand-driven nature of MGNREGS.
Responding to concerns over delayed fund release, Chouhan clarified that wage payments are transferred directly to workers’ accounts via Direct Benefit Transfer (DBT). For material and administrative expenses, however, States must submit proposals along with relevant documentation. Funds are then released in tranches based on performance indicators, pending liabilities, and the approved Labour Budget.
Highlighting the scheme’s core goals, Chouhan said MGNREGS aims to provide guaranteed employment while creating durable assets, enhancing livelihood resources, fostering social inclusion, and empowering Panchayati Raj institutions.
The statement comes amid reports of some states expressing concerns over delayed central releases, but the Centre maintains that funds are being provided based on procedural compliance and utilisation metrics.
