Skip to main content

Govt of India 'lying': MGNREGA budget reduced by Rs 1,084 crore in 2019-20

Counterview Desk
NREGA Sangharsh Morcha, a well-known advocacy group for the rural jobs guarantee scheme, under implementation since 2005, has said that the statement by the Rural Development Minister has a made a mockery of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on the floor of Parliament, revealing the ruling BJP’s “anti-worker and anti-poor bias”.
The Morcha has said in a statement, not only did the minister present “grossly misleading figures”, he went ahead with declaring that “he is not in favour of the continuation of NREGA because it is a programme designed for the poor and this government is committed to eliminating poverty”; the minister much understand, MGNREGA “is not subject to the whims and beliefs of individual ministers that come and go.”

Text:

While it is heartening that a discussion on rural development lasted for nine hours in Parliament with important issues on MGNREGA being raised, we are deeply disappointed at the statement of the Rural Development Minister that not only displays a lack of understanding of the programme but also betrays the clear anti-poor sentiment of this government.
On the central issue of inadequate funds which several MPs raised and NREGA workers and citizens groups have been consistently demanding for years, the minister responded by first simply citing a cumulative budget amount between 2014 and 2019 comparing it to the period between 2008 and 2013. These figures are meaningless because they do not give people a sense of the real decline in MGNREGA allocation.
The Minister then went to on to say that this government has regularly increased the budget allocation for MGNREGA. This is an outright lie on the floor of the house. In fact the minister himself presented the figures of Rs 55,000 crore in 2017-18, followed by Rs 61,084 crore in 2018-19 and Rs 60,000 crore in 2019-20. By his own figures, the budget allocation for MGNREGA in this financial year (Rs 60,000 crore) is less than that of the previous year (Rs 61,084 crore).
Moreover, with pending liabilities mounting at the end of the every financial cycle (20-35% of budget allocation) and inflation increasing every year, both incontrovertible facts, even a seemingly small decrease in the allocation for the programme brings implementation to a grinding halt on the ground.
The dismissal of the demand for higher allocation for the programme without any acknowledgement of this reality and presenting inaccurate figures demonstrates the intent of this government to continue to choke funds to MGNREGA while misleading the public and elected representatives alike.
Second, the minister announced that 99% of MGNREGA payments are going into workers accounts. While this is true, the payment to bank accounts has nothing to do with the work of this government. The shift from cash to bank accounts dates back to 2010. What the minister refused to address is the issue of delayed payments linked to the non-availability of timely funds which has strangled the programme and adversely affected the lives of millions of workers.
Also, the minister seems to be ignorant about the fact that the payments are still routinely delayed and the Adhaar based payments through the fragile rural banking systems have further added to the plights of the workers. 
Rightfully acknowledging the role of MGNREGA in providing alternative employment across rural India, the Minister cited official figures of 268 crore persondays provided in 2018-19 of which a little over half the share of employment went to women (55%). However, activists and researchers have been pointing out for years that MGNREGA is functioning far below its potential.
The Minister however seems unaware of this reality because according to him 52% of households that have worked under the programme have been employed for a 100 days. This figure is nothing but fiction. Never in the history of MGNREGA, have more than 10% of households received the full 100 days of guaranteed employment and average days of employment has not gone beyond 51.
For 33 states and Union Territories the NREGA wage rate is less than the corresponding minimum wage for agriculture
After the presentation of these grossly misleading figures, followed a bizarre statement where the Minister said that he is not in favour of the continuation of NREGA because it is a programme designed for the poor and this government is committed to eliminating poverty. We condemn this statement on two counts.
First, MGNREGA is an act of Parliament with constitutional backing and is not subject to the whims and beliefs of individual ministers that come and go. 
Secondly, the statement reveals an anti-poor bias of this government which seems to be more interested in “eliminating” the poor rather that addressing the complex issues of poverty and inequality that rural India continues to face in 2019. This statement also reveals a complete lack of understanding of the role MGNREGA has played in addressing rural poverty.
There is now ample evidence to show that MGNREGA has served as a lifeline for the rural poor with one out of every three households having worked under the programme since its inception. Just as one example, according to the National Council of Applied Economic Research (NCAER) report, at least 25% of the decline in poverty since 2004-05 for participating households can be attributed to MGNREGA.
The NREGA Sangharsh Morcha feels that while in the current context strengthening MGNREGA is the need of the hour, the union minister’s statement at the floor of Parliament, expose Bharata Janata Party’s anti-poor bias.
Last year, the average increase in MGNREGA wages across the country is a measly 2.6%. At a time when large parts of the country are experiencing yet another drought, unemployment is at a historical high and the poor are still recovering from 2016’s demonetisation which crippled the informal economy and led to job-losses for millions across the country, rural wages remain stagnant.
The Supreme Court has repeatedly upheld minimum wages as a fundamental right and equated payment of anything less as “forced labour”. Un-remunerative NREGA wages, coupled with long delays in wage payments – even non-payment of wages in many cases – has turned many rural workers away from the employment guarantee programme.
For 33 states and Union Territories the NREGA wage rate is less than the corresponding minimum wage for agriculture, condemning its employment guarantee act workers to another year of bonded labour.
NREGA Sangharsh Morcha strongly condemns this anti-workers decision and demands an increase in the NREGA wage rate to Rs 600 a day. This follows the Seventh Pay Commission recommendation of Rs 18,000 as the minimum monthly salary.

Comments

Kamal Chenoy said…
Jean Dreze and I were the initial actors in MGNREGA scheme in Chattisgarh and Jharkhand. When PM Modi came later he was skeptical about the Act. It’s monetary support has considerably diminished, beggaring the rural poor and the expectations of rural development

TRENDING

Academics urge Azim Premji University to drop FIR against Student Reading Circle

  By A Representative   A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

  By Rajiv Shah   This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative   The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress. 

Asbestos contamination in children’s products highlights global oversight gaps

By A Representative   A commentary published by the International Ban Asbestos Secretariat (IBAS) has drawn attention to the challenges governments face in responding effectively to global public-health risks. In an article written by Laurie Kazan-Allen and published on March 5, 2026, the author examines how the discovery of asbestos contamination in children’s play products has raised questions about regulatory oversight and international product safety. The article opens by reflecting on lessons from the COVID-19 pandemic, noting that governments in several countries were slow to respond to early warning signs of the crisis. Referring to the experience of the United Kingdom, the author writes that delays in implementing protective measures contributed to “232,112 recorded deaths and over a million people suffering from long Covid.” The commentary uses this example to illustrate what it describes as the dangers of underestimating emerging threats. Attention then turns...

Aligning too closely with U.S., allies, India’s silence on IRIS Dena raises troubling questions

By Vidya Bhushan Rawat*  The reported sinking of the Iranian ship IRIS Dena in the Indian Ocean near Sri Lanka raises troubling questions about international norms and the credibility of the so-called rule-based order. If indeed the vessel was attacked by the American Navy while returning from a joint exercise in Visakhapatnam, it would represent a serious breach of trust and a violation of the principles that govern such cooperative engagements. Warships participating in these exercises are generally not armed for combat; they are meant to symbolize solidarity and friendship. The incident, therefore, is not only shocking but also deeply ironic.

The kitchen as prison: A feminist elegy for domestic slavery

By Garima Srivastava* Kumar Ambuj stands as one of the most incisive voices in contemporary Hindi poetry. His work, stripped of ornamentation, speaks directly to the lived realities of India’s marginalized—women, the rural poor, and those crushed under invisible forms of violence. His celebrated poem “Women Who Cook” (Khānā Banātī Striyāṃ) is not merely about food preparation; it is a searing indictment of patriarchal domestic structures that reduce women’s existence to endless, unpaid labour.

India’s foreign policy at crossroads: Cost of silence in the face of aggression

By Venkatesh Narayanan, Sandeep Pandey  The widely anticipated yet unprovoked attack on Iran on March 1 by the United States and Israel has drawn sharp criticism from several quarters around the world. Reports indicate that the strikes have resulted in significant civilian casualties, including 165 elementary school girls, 20 female volleyball players, and many other civilians. 

India’s green energy push faces talent crunch amidst record growth at 16% CAGR

By Jag Jivan*  A new study by a top consulting firm has found that India’s cleantech sector is entering a decisive growth phase, with strong policy backing, record capacity additions and surging investor interest, but facing mounting pressure on talent supply and rising compensation costs .

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".