NREGA Sangharsh Morcha slams Union budget, citing betrayal of rural workers

By A Representative

The NREGA Sangharsh Morcha (NSM) has strongly criticized the Union Budget for the 2025-26 fiscal year, alleging it betrays Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers and demonstrates the government's continued neglect of the rural workforce.

The budget allocation for MGNREGA remains at ₹86,000 crores, which, after adjusting for inflation, represents an approximate ₹4,000 crore decrease compared to the previous year. The allocation as a percentage of GDP has also fallen to a mere 0.24%, down from 0.26% in the last fiscal year. The budget also fails to account for routine wage indexation.

The NSM argues this inadequate funding will lead to several critical issues: massive delays in wage payments, further straining the financial stability of millions of rural workers; suppression of work demand, denying individuals their legal right to employment; and a decline in the creation of quality assets, weakening rural infrastructure.

The Morcha highlighted the current fiscal year's funding shortfall. As of February 1st, the deficit stands at ₹9,860 crores, with pending wages of ₹6,948.55 crores as of January 25th. With two months remaining in the financial year, the NSM points out that historically, an average of 20% of the budget is used to clear past dues. This pattern suggests the effective allocation for FY 2025-26 will likely be no more than ₹70,000 crores.

Data from the current fiscal year paints a grim picture, with person-days generated at 239.67 crore (as of February 1st, 2025), average workdays per household at just 44.62, and only 20,77,014 households completing 100 days of work. The NSM asserts this demonstrates the government's lack of commitment to fulfilling its legal obligations under MGNREGA.

The NSM contends that the government's strategy of a low initial allocation is a deliberate attempt to suppress work demand. They argue that a larger MGNREGA budget could have significantly boosted rural demand, especially at a time when the government is focusing on middle-class tax relief. They claim that inadequate budgets lead to wage delays, forcing workers into distress and discouraging participation in the program.

The NSM also noted that the Parliamentary Standing Committee on Rural Development and Panchayati Raj had previously flagged the funding shortage as a major obstacle to MGNREGA's implementation, emphasizing its impact on timely wage payments and overall progress. The Committee had recommended increased funding, but these recommendations have been ignored.

The NSM recalled a December 2024 briefing of Union Minister Shivraj Singh Chouhan on the consequences of insufficient funding. They expressed disappointment that these concerns were not addressed in the budget. Despite protests and representations by workers, the NSM concludes that the government's actions represent a betrayal of those who depend on MGNREGA for survival.

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