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

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Kolkata dialogue flags policy and finance deficit in wetland sustainability

By A Representative   Wetlands were the focus of India–Germany climate talks in Kolkata, where experts from government, business, and civil society stressed both their ecological importance and the urgent need for stronger conservation frameworks. 

Beyond Lata: How Asha Bhosle redefined the female voice with her underrated versatility

By Vidya Bhushan Rawat*  The news of iconic Asha Bhosle’s ‘untimely’ demise has shocked music lovers across the country. Asha Tai was 92 years young. Normally, people celebrate a passing at this age, but Asha Bhosle—much like another legend, Dev Anand—never made us feel she was growing old. She was perhaps the most versatile artist in Bombay cinema. Hailing from a family devoted to music, Asha’s journey to success and fame was not easy. Her elder sister, Lata Mangeshkar, had already become the voice of women in cinema, and most contemporaries like Shamshad Begum, Suraiya, and Noor Jehan had slowly faded into oblivion. Frankly, there was no second or third to Lata Mangeshkar; she became the first—and perhaps the only—choice for music directors and all those who mattered in filmmaking. Asha started her musical journey at age 10 with a Marathi film, but her first break in Hindustani cinema came with the film "Chunariya" (1948). Though she was not the first choice of ...

Maoist activity in India: Weakening structures, 'shifts' in leadership, strategy and ideology

By Harsh Thakor*  Recent statements by government representatives have suggested that Maoism in India has been effectively eliminated, citing the weakening of central leadership and intensified security operations. These claims follow sustained counterinsurgency efforts across key regions, including central and eastern India. However, available information from security agencies and independent observers indicates that while the organizational structure of the CPI (Maoist) has been significantly disrupted, elements of the movement remain active. Reports acknowledge the continued presence of cadres in certain forested regions such as Bastar and parts of Dandakaranya, alongside smaller, decentralized units adapting their operational strategies.

From Manesar to Noida: Workers take to streets for bread, media looks away

By Sunil Kumar*   Across several states in India, a workers’ movement is gathering momentum. This is not a movement born of luxury or ambition, nor a demand for power-sharing within the state. At its core lies a stark and basic plea: the right to survive with dignity—adequate food, and wages sufficient to afford it.

Midnight weeping: The sociology of tragic vision in Badri Narayan’s poetry

By Ravi Ranjan*  Badri Narayan, a distinguished Hindi poet and social scientist, occupies a unique position in contemporary Indian intellectual life by bridging the worlds of creative literature and critical social inquiry. His poetic journey began significantly with the 1993 collection 'Saca Sune Hue Kaï Dina Hue' (Truth Heard Many Days Ago). As a social historian and cultural anthropologist, Narayan pioneered a methodological shift away from elite archives toward the oral traditions and folk myths of marginalized communities. He eventually legitimized "folk-ethnography" as a rigorous academic discipline during his tenure as Director of the G.B. Pant Social Science Institute.  

Why link women’s reservation to delimitation? The unspoken political calculus

By Vikas Meshram*  April 16, 2026, is likely to be recorded as a special day in the history of Indian democracy. In a three-day special session of Parliament, the central government is set to introduce a comprehensive package of three historic bills: the Constitution (131st Amendment) Bill, 2026; the Delimitation Bill, 2026; and the Union Territories Laws (Amendment) Bill, 2026. The stated purpose of all three is the same: to implement the Nari Shakti Vandan Adhiniyam (106th Constitutional Amendment) passed in 2023. However, the political intent concealed behind these measures — and their impact on the federal balance — is far more profound. It is absolutely essential to understand this.

Catholic union opposes FCRA amendments, warns of threat to Church institutions

By A Representative   The All India Catholic Union (AICU) has raised serious concerns over what it describes as growing threats to religious freedom, minority rights, and constitutional safeguards in India, warning that recent policy and legislative trends could undermine the country’s secular and federal framework.

'It's power grab, not reform': Uttarakhand hills fear marginalization under new delimitation

By Vidya Bhushan Rawat*  The proposed delimitation bill, coupled with the women’s reservation bill, is a calculated attempt to divert attention during state elections while laying the groundwork for long-term power consolidation through a north Indian hegemony. India’s constitution-making process was arduous, but it was guided by leaders deeply committed to unity and integrity. They ensured no community felt betrayed, and the foundation of modern India was laid on inclusivity. Any attempt to alter this balance must be approached with caution and respect for that legacy.