Issues with MGNREGA Scheme

What is MGNREGA Scheme?

• MGNREGA’s Importance
  • The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has remained relevant for nearly 20 years surviving under different political regimes due to its benefits for rural workers.
• Budgetary Concerns
  • The schemes budget allocation has declined significantly from 3.2% of total expenditure in FY21 to 1.78% in FY25(BE).
• Unmet Financial Requirements
  • Despite being demand-driven, no additional funds have been allocated this year, leading to 4315 crore wage shortages and 5715 crore pending for material costs.
• Implementation Issues
  • The scheme suffers from delay in payment of wages Aadhaar-based issues and no inflation-indexed wages.
• Economic and Social Impact
  • The scheme supports rural workers building much-needed infrastructure, irrigation canals, rural roads, water conservation, and boosts the rural economy.