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Issues with MGNREGA Scheme

1 min read
All exams GA

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.
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