Episode Details
Back to EpisodesWhat are the implications of the cuts in allocation to MGNREGA in the Union Budget?
Description
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) promises 100 days of wage-based employment every year to rural households across the country. As per independent reports, demand for work under this scheme has been increasing. But in the 2023-24 Union Budget, the government has slashed allocation for this scheme to ₹61,032.65 crore, which is 30% less than the revised estimate of ₹ 89,154.65 crore for 2022-23. This is the lowest ever allocation as a percentage of the GDP, at less than 0.2%.
This is the second straight cut, as in the 2022-23 budget also the allocation was reduced by 25%. So, what are the government’s justifications for these budget cuts? How do they relate to ground realities? Is there a danger of demand suppression through insufficient budgeting, as claimed by MGNREGA advocates?
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