Context:
As of February 2025, MGNREGA has a total of 21.8 million households seeking work, which is a minor increase of 3% from February of the previous year. There has been a sustained demand growth for the work that is always higher than the previous year towards the end of November 2024.
Funding Shortfall: MGNREGA has a net negative balance amount of ₹18681.24 crore as of the 3rd of March, 2025.
Financial Scenario
- Pending dues in total: ₹14,239.17 crore.
- Unskilled wages: 929.14 crore (6.52% of total dues).
- All other pending dues relate primarily to material costs.
- States with highest negative balances:
- Tamil Nadu: ₹3,443 crore
- Uttar Pradesh: ₹2,817 crore
- Maharashtra: ₹2,758 crore
- Bihar: ₹2,082 crore
Work Demand Trend
- MGNREGA demand continues to stay high indicating both rural distress as well as dependency on employment.
- Even though demand remains high, funds are in shortage which raises concerns over timely payments for wage and material procurement.
More likely further fund allocation might be needed to cater demands on rise.
Delayed payments could have repercussions on rural livelihoods as well as project completion.
Sustained increase in demand may signal wider economy or employment issues in rural India.
