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MGNREGA outlay hiked by Rs 3,800 cr

The NDA government, which had earlier raised doubts over the efficacy of MGNREGA, on Monday increased its allocation by over Rs 3,800 crore in 2016-17, with Finance Minister Arun Jaitley laying down the road map for rural development in the Budget. “Rs 38,500 crore have been allocated for MGNREGA in 2016-17. If the total amount is spent, it will be highest budget spend on MGNREGA,” Jaitely said in his Budget speech in Lok Sabha. In the last fiscal, the government had made a budgetary provision of Rs 34,699 crore for MGNREGA and promised to provide another Rs 5,000 crore based on the actual utilisation of funds by the states and Union Territories. 

Reminding the government of its promise, Rural Development Minister Birender Singh had written in this regard to Jaitley on December 30 last year, apprehending a “shortfall of Rs 5,000 crore” in the scheme for this fiscal if the promised additional Rs 5,000 crore was not granted for the scheme. People’s Action for Employment Guarantee, an NGO led by Aruna Roy and Nikhil Dey, had separately voiced disappointment, saying that while the government had promised another Rs 5,000 crore for the programme in last year’s budget, it had released only Rs 2,000 crore. The initial budget allocation for 2014-15 was Rs 34,000 crore. In the revised Budget, it was only Rs 31,000 crore then.
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