GoI's 2023-24 NREGA allocation 'lowest ever', 0.198% of GDP; just 4% of funds remain

Counterview Desk
The National NREGA Convention, organised by the NREGA Sangharsh Morcha in New Delhi on 3-4 October, has accused the Government of India (GoI) of systematically destroying the rural jobs scheme in order to bing the programme to its knees by resorting to budget cuts, inordinate delays in wage payments and arbitrary imposition of opaque and inaccessible technologies.
Pointing towards how NREGA has been completely shutdown in West Bengal for over 18 months as a result of stoppage of funds by the Central government citing corruption issue, the Morcha in a statement said, "This step is more political than legal, given the Centre has not conducted any investigation, registered any complaint against complicit officials or made any attempt to fight implementation-level leakages in the State."

Text:

The First National NREGA Convention was held in New Delhi on 3-4 October 2023 by the NREGA Sangharsh Morcha. The convention saw participation of over 200 delegates from 15 states, including NREGA workers, activists, researchers, lawyers and students. Deeply committed to the universal right to livelihood, the delegates discussed the various issues affecting the functioning of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (NREGA) and deliberated upon ways for implementation of the NREGA in the true spirit of the law.

Sai Balaji (AICCTU), Aparna (IFTU), Manju (Amazon India Workers’ Association), Sukumar Dhamle (AITUC) and Vikram (All India Agricultural Workers’ Union), Richa Singh (Sangatin Kisan Mazdoor Sangathan), Hannan Mollah (All India Kisan Sabha), V Sivadasan (AIAWU) and Navsharan Singh addressed the delegates and extended solidarity to the fight of NREGA workers across the country.
Centre for Monitoring Indian Economy (CMIE) data shows that the unemployment rate in rural India is at a two-year high of 8.73%. In spite of this, the Central Government has taken several steps towards the systematic destruction of NREGA that have brought the programme to its knees, such as budget cuts, inordinate delays in wage payments and arbitrary imposition of opaque and inaccessible technologies i.e. National Monitoring Management System (NMMS) and Aadhaar-Based Payment System (ABPS).

For instance, only Rs. 60,00 crores have been allocated to NREGA for FY 2023-24 despite pre-budget estimates coming up to Rs 89,400 crore. This is a mere 0.198% of GDP -- the lowest ever in the history of NREGA, and as of 4 October 2023, less than 4% of the NREGA budget remains. Moreover, the NREGA wage rate is lower than the agricultural wage rate in 90% of the states, with Madhya Pradesh’s being the lowest at Rs. 221 and relatively poorer states like Uttar Pradesh and Jharkhand at Rs. 228.
In addition, NREGA has been in complete shutdown in West Bengal for over 18 months (since December 2021) as a result of a complete stoppage of funds by the Central government citing corruption issues. However, this step is more political than legal, given the Centre has not conducted any investigation, registered any complaint against complicit officials or made any attempt to fight implementation-level leakages in the state.

As many as 30 leaders from Trinamool Congress, including sitting MPs Mahua Moitra and Abhishek Bannerjee, were protesting against this very issue at Krishi Bhawan on 3 October 2023 when they were forcibly removed by the Delhi Police, adding to the ever-growing list of concerted attacks on the fundamental right to free speech and peaceful protest in the world’s largest democracy.

Morcha will take up BJP Hatao NREGA Bachao campaign keeping in view the 2024 general elections

After two days of detailed discussions on the various issues plaguing the NREGA, the delegates adopted the following resolutions to conclude the First National NREGA Convention:

1. The following minimum steps ought to be guaranteed by the Central Government to keep the NREGA alive:
1.1. Allocation of adequate budget and timely release of funds to ensure work demand is met and wages are paid in time.
1.2. In line with rising prices, MGNREGA wage rate must be increased to Rs. 800 per day (or at the very minimum, brought on par with states’ agricultural wage rates).
1.3. Work days guaranteed per year must be increased to 200.
1.4. Fighting corruption by enhancing people’s participation and vigilance as opposed to imposing highly-centralised technological solutions like NMMS and ABPS. Instead, regular and independent social audits must be conducted, workers must be provided daily payslips showing the amount of work done and wages due, and monthly gram sabhas must be organised for announcing muster rolls, passing of NREGA accounts, and planning new works.
2. To fight the ongoing unemployment crisis in the country, an urban employment guarantee programme must also be initiated guaranteeing a minimum 200 days of work per year for the urban unemployed.
3. Repeated appeals and attempts at dialogue with the Central Government to highlight policy issues in NREGA have failed. However, the Morcha will put forward its concerns and suggestions to the Central Government one last time, as well as bring them to the attention of the ruling party (BJP) and the INDIA alliance.
4. Should the Modi government fail to meet the above list of non-negotiables, the Morcha will take up a campaign of “BJP Hatao, NREGA Bachao!” keeping in view the 2024 general elections.
5. To this end, the Morcha will conduct village-level activities and gram sabhas in every village where it has roots so as to ensure that no NREGA worker votes for the BJP in 2024. Further, the Morcha will organise nation-wide action and sit in protest in Delhi during the winter session of the Parliament in December 2023.

Comments

Gram sabha as reformer: Mandla’s quiet challenge to the liquor economy

By Raj Kumar Sinha* This year, the Union Ministry of Panchayati Raj is organising a two-day PESA Mahotsav in Visakhapatnam, Andhra Pradesh, on 23–24 December 2025. The event marks the passage of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), enacted by Parliament on 24 December 1996 to establish self-governance in Fifth Schedule areas. Scheduled Areas are those notified by the President of India under Article 244(1) read with the Fifth Schedule of the Constitution, which provides for a distinct framework of governance recognising the autonomy of tribal regions. At present, Fifth Schedule areas exist in ten states: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana. The PESA Act, 1996 empowers Gram Sabhas—the village assemblies—as the foundation of self-rule in these areas. Among the many powers devolved to them is the authority to take decisions on local matters, including the regulation...

MG-NREGA: A global model still waiting to be fully implemented

By Bharat Dogra When the Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA) was introduced in India nearly two decades ago, it drew worldwide attention. The reason was evident. At a time when states across much of the world were retreating from responsibility for livelihoods and welfare, the world’s second most populous country—with nearly two-thirds of its people living in rural or semi-rural areas—committed itself to guaranteeing 100 days of employment a year to its rural population.

Policy changes in rural employment scheme and the politics of nomenclature

By N.S. Venkataraman* The Government of India has introduced a revised rural employment programme by fine-tuning the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has been in operation for nearly two decades. The MGNREGA scheme guarantees 100 days of employment annually to rural households and has primarily benefited populations in rural areas. The revised programme has been named VB-G RAM–G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission – Gramin). The government has stated that the revised scheme incorporates several structural changes, including an increase in guaranteed employment from 100 to 125 days, modifications in the financing pattern, provisions to strengthen unemployment allowances, and penalties for delays in wage payments. Given the extent of these changes, the government has argued that a new name is required to distinguish the revised programme from the existing MGNREGA framework. As has been witnessed in recent years, the introdu...

Rollback of right to work? VB–GRAM G Bill 'dilutes' statutory employment guarantee

By A Representative The Right to Food Campaign has strongly condemned the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–GRAM G) Bill, 2025, describing it as a major rollback of workers’ rights and a fundamental dilution of the statutory Right to Work guaranteed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a statement, the Campaign termed the repeal of MGNREGA a “dark day for workers’ rights” and accused the government of converting a legally enforceable, demand-based employment guarantee into a centralised, discretionary welfare scheme.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

'Structural sabotage': Concern over sector-limited job guarantee in new employment law

By A Representative The advocacy group Centre for Financial Accountability (CFA) has raised concerns over the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (VB–G RAM G), which was approved during the recently concluded session of Parliament amid protests by opposition members. The legislation is intended to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Making rigid distinctions between Indian and foreign 'historically untenable'

By A Representative Oral historian, filmmaker and cultural conservationist Sohail Hashmi has said that everyday practices related to attire, food and architecture in India reflect long histories of interaction and adaptation rather than rigid or exclusionary ideas of identity. He was speaking at a webinar organised by the Indian History Forum (IHF).

India’s Halal economy 'faces an uncertain future' under the new food Bill

By Syed Ali Mujtaba* The proposed Food Safety and Standards (Amendment) Bill, 2025 marks a decisive shift in India’s food regulation landscape by seeking to place Halal certification exclusively under government control while criminalising all private Halal certification bodies. Although the Bill claims to promote “transparency” and “standardisation,” its structure and implications raise serious concerns about religious freedom, economic marginalisation, and the systematic dismantling of a long-established, Muslim-led Halal ecosystem in India.

From jobless to ‘job-loss’ growth: Experts critique gig economy and fintech risks

By A Representative Leading economists and social activists gathered in the capital on Friday to launch the third edition of the State of Finance in India Report 2024-25 , issuing a stark warning that the rapid digitalization of the Indian economy is eroding welfare systems and entrenching "digital dystopia."

Search This Blog