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Centre owes state 464cr under rural employment scheme

Centre owes state 464cr under rural employment scheme

Time of India22-07-2025
Chennai: Union govt owes TN 464crore in dues under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Centre told Parliament. This comes as fund allocation and job generation saw a sharp decline over the years.
Response to more than seven starred questions from MPs across states, including TN MPs Thamizhachi Thangapandian, TM Selvaganapathi, and Thangathamilselvan, came from ministers in Union rural development ministry. Union minister
Shivraj Singh Chouhan
said dues comprising wage and material costs were pending due to procedural requirements, fund utilisation pace, and existing liabilities. Centre, having issued new standard operating procedures, is pushing for Aadhaar-linked DBT payments, and is conducting regular reviews to clear backlogs, he added.
The statement also revealed that TN's allocation under MGNREGS dropped from 9,743crore in 2022-23 to 7,585crore in 2024-25. The number of person-days generated fell from 3,346 lakh to 3,061 lakh, indicating fewer work opportunities for rural households.
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Under the scheme, 100% of wage and administration expenditure is borne by Union govt, whereas it bears 75% of material expenditure and 25% is shared by the state. Union govt said about 2,884crore of wage dues to TN was released in April this year, and another 50% of material component dues of 858crore in March.
Allocations under the Centre's housing scheme will be based on previous usage, pending houses, and current targets. To a query on rural roads, the ministry said 7,375 km of roads were relaid in TN and more have been sanctioned.
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