New Delhi: In what it shows that employment demand under MGNREG will be high like last year, whose expectations and government funding, this scheme has been a budget fatigue approved for the current financial year with five months.
Expenditures under the Mahatma Gandhi National Rural Guarantee Act scheme until now is Rs 70,134 Crore, which is 98.5% of the total allocation, according to the scheme portal.
This means that the government needs to provide more money to fund schemes.
The requirement is also likely considering November-March needs to be budgeted in 2021-22.
In a statement, the Ministry of Rural Development said the government was committed to providing funds for schemes, which were driven by demand, and added that similar situations have emerged in the past too.
“In the previous financial year, the Ministry of Finance has allocated additional funds of Rs 50,000 Crore for the scheme, exceeding and above budget estimates,” he said.
As on that day, MGNREG has produced 222.16 days of working days crore.
While the work produced in the pre-pandemic of the normal year 2019-20 is 265.35 days crore people, on the contrary, the work produced after the Covid attack on 2020-21 is 389.17 days of Crore.
Given that money will be asked to keep the scheme running, both the Ministry of Finance must contribute or the government will wait to pass additional grants in parliamentary sessions to be held in November.
In the event of the last option, the state government must use money from their budget, the situation that they generally do not approve of providing their own financial constraints.
What stands out in the performance of this year’s scheme is that the demand for work under MGNREG will be high like 2020-21 when a pandemic struck, indicating that the generation of work in the formal and informal sectors has not recovered to the pre-pandemic level.
What a possible estimate of annoyance was that three months after the budget was moved, the country jerked by the second wave of pandemic which resulted in the key to a decline of almost two months.
While the total expenditure at 2020-21 is Rs 1,11,443 Crore, the center decided to cut the budget for the scheme around Rs 71,000 Crore for the current year.
The total expenditure in 2019-20 is Rs 68,265 Crore.