Archive · 10 Jun 2025
Centre Imposes Spending Cap on MGNREGS for FY2025-26
The government is limiting how much money can be spent on the MGNREGA program, which provides jobs in rural areas, for the first six months of next year.
This is new; previously, there was no limit.
The Finance Ministry wants to control how money is spent, so it's setting a spending cap.
Because there's still a lot of money owed from last year, this limit might mean fewer people get jobs through the program.
This is because a large portion of the funds will go towards clearing old dues.
The government is also asking why there are still bills unpaid from the previous year.
Government caps MGNREGS spending at 60% for the first half of FY2025-26.
This is the first time such a spending limit has been imposed on the scheme.
The Finance Ministry directed the Rural Development Ministry to include MGNREGS under the MEP/QEP.
The cap could impact employment generation due to significant pending liabilities.
Officials raised concerns about the Rs 21,000 crore in pending liabilities from the previous year.
- Who
- Finance Ministry, Rural Development Ministry
- What
- Government caps MGNREGS spending at 60% for first half of FY25-26.
- When
- First half of fiscal year 2025-26.
- Where
- India
- Why
- Finance Ministry aims to manage cash flow and address pending liabilities, potentially impacting employment.
- Scheme
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
- Spending Cap
- 60% of annual allocation for first half of FY25-26
- Annual Allocation
- Rs 86,000 crore
- Available Funds (First Half)
- Rs 51,600 crore
- Pending Liabilities
- Rs 21,000 crore
- Labour Budget
- 198.86 crore persondays
