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Cloud over MGNREGS restart in Bengal as Centre yet to clear labour budget
Cloud over MGNREGS restart in Bengal as Centre yet to clear labour budget

Indian Express

time6 days ago

  • Business
  • Indian Express

Cloud over MGNREGS restart in Bengal as Centre yet to clear labour budget

THE RESUMPTION of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in West Bengal remains uncertain as the August 1 deadline set by the Calcutta High Court for restarting the scheme is over and the Centre is yet to clear the state's labour budget for the financial year 2025–2026, The Indian Express has learnt. According to sources, the West Bengal government had written to the Union Ministry of Rural Development (MoRD) seeking approval to its labour budget, but the same has not been done so far. The labour budget is approved by the Empowered Committee headed by the Union Rural Development Secretary. States generate their demands for funds using NREGASoft, the management information system of the MGNREGS, only after this committee clears their labour budget proposals. Rural Development Minister Shivraj Singh Chouhan said on Monday that the Central government is committed to the development of West Bengal and the welfare of its people. He alleged that the Mamata Banerjee government has 'failed miserably' in effectively implementing MGNREGS, but did not say anything about the resumption of the scheme in the state. 'From the year 2019 to 2022, Central teams visited 19 districts of West Bengal. During these visits, the Central teams found many anomalies and irregularities in the works of MNREGA in the state such as absence of work at the site, dividing the work into portions against the rules, misappropriation of funds… flouting rules and norms of MNREGA,' Chouhan said in a post on X. 'Due to these unethical actions of the state government, misuse of public money and lack of improvement in the system, the Ministry of Rural Development has stopped the release of funds of the state government under Section 27 of the MNREGA Act,' he said. Under the MNREGS, the MoRD releases funds to states 'based on agreed labour budget'. Generally, the states' labour budget proposals are approved by the MoRD by the end of January or before the beginning of the financial year (April-March). In West Bengal's case, no labour budget has been approved after FY 2021-22 after the Centre suspended the implementation of the scheme in the state. By invoking Section 27 of MGNREGA, 2005, the Centre had stopped release of funds to West Bengal with effect from March 9, 2022. In an order on June 18, 2025, the Calcutta High Court directed that the 'scheme be implemented prospectively with effect from August 1, 2025'. However, West Bengal officials say they have not received any intimation from the Centre about resumption of the scheme in the state. They have also been urging the ministry to approve of the labour budget but the same has not happened yet, said an official. The ministry officials have maintained silence so far on the issue of Bengal. Asked whether the MoRD challenged the June 18 order of the Calcutta HC, the officials did not respond. They also did not respond to queries on non-approval of Bengal's labour budget. According to sources, the Centre has not yet challenged the court order yet. On July 22, Union Minister Chouhan told the Lok Sabha that the High Court order is 'being studied in the ministry to decide further course of action'. In January this year, West Bengal's Rural Development Minister Pradip K Mazumdar wrote a letter to Chouhan, seeking an appointment for a meeting, which has not happened so far. Earlier, multiple meetings between the Centre and West Bengal government officials have taken place but the issue has not been resolved till date. Before the Centre suspended the MGNREGS in March 2022, West Bengal figured among the top performers with 51 lakh to 80 lakh families in the state availing of the scheme annually between 2014-15 and 2021-22. The data available on the NREGS portal shows that the number of households working through the rural job guarantee scheme stood at 51 lakh in 2014-15, 61 lakh in 2015-16, 58 lakh in 2016-17, 52 lakh in 2017-18, 43.89 lakh in 2018-19, 54.57 lakh in 2019-20, 79.64 lakh in 2020-21 and 75.97 lakh in 2021-22.

Uncertainty looms over the resumption of NREGS in Bengal as the Centre is yet to clear the labour budget
Uncertainty looms over the resumption of NREGS in Bengal as the Centre is yet to clear the labour budget

Indian Express

time03-08-2025

  • Business
  • Indian Express

Uncertainty looms over the resumption of NREGS in Bengal as the Centre is yet to clear the labour budget

With the August 1 deadline set by the Calcutta High Court for restarting Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS) in West Bengal already passed, the job program's resumption remains uncertain as the Centre is yet to clear the state's labour budget for financial year 2025–26, The Indian Express has learnt. According to sources, the West Bengal government had written to the Union Ministry of Rural Development (MoRD), seeking approval to its labour budget. However, the same has not been done so far, said a source. The labour budget refers to anticipated demand for unskilled manual work for execution of a shelf of work identified to be taken up during a financial year. The labour budget is approved by the Empowered Committee headed by the Union Rural Development Secretary. The states can generate their demands for funds using NREGASoft, the Management Information System (MIS) of the MG-NREGS, only after this committee clears their labour budget proposals. Under the NREGS, the MoRD releases funds to states 'based on agreed labour budget'. Generally, the states' labour budget proposals are approved by the MoRD by the end of January before the beginning of each financial year (April-March). In Bengal's case, no labour budget has been approved post financial year 2021-22 after the Centre suspended implementation of the scheme in the state. By invoking Section 27 of the MGNREGA, 2005, the Centre had stopped release of funds to West Bengal with effect from March 9, 2022, 'due to non-compliance of directives of Central Government'. Since then, no work under the NREGS has taken place in the state. In an order on 18th June 2025, the Calcutta High Court had directed that the 'scheme be implemented prospectively with effect from 1st August 2025'. However, the West Bengal officials say that they have not received any intimation from the Centre about resumption of the scheme in the state. They have also been urging the MoRD for approval of the labour budget but the same has not happened either, said an official. The MoRD officials have kept mum so far on the issue of Bengal. When asked whether the ministry has challenged the June 18 Calcutta High Court order, the concerned officials at the MoRD did not respond. However, sources say that the Centre has not yet challenged the order. On July 22, Rural Development Minister Shivraj Singh Chouhan had told Lok Sabha that the order of the High Court is 'being studied in the Ministry to decide further course of action'. In January this year, West Bengal's Rural Development Minister Pradip K Mazumdar wrote a letter to Chouhan, seeking an appointment for a meeting, which has not happened so far. Earlier, multiple meetings between the Centre and West Bengal government officials have taken place but the issue has not been resolved till date. Before the Centre suspended the MG-NREGS in March 2022, West Bengal figured among the top performers with 51-80 lakh families in the state availing the scheme annually between 2014-15 and 2021-22. The data available on the NREGS portal shows that the number of households working through the rural job guarantee scheme stood at 51 lakh in 2014-15, 61 lakh in 2015-16, 58 lakh in 2016-17, 52 lakh in 2017-18, 43.89 lakh in 2018-19, 54.57 lakh in 2019-20, 79.64 lakh in 2020-21, and 75.97 lakh in 2021-22. Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister's Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers' Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More

Priyank Kharge seeks urgent release of pending MGNREGA funds
Priyank Kharge seeks urgent release of pending MGNREGA funds

The Hindu

time25-05-2025

  • Business
  • The Hindu

Priyank Kharge seeks urgent release of pending MGNREGA funds

Expressing serious concern over the continued delay in the release of funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to Karnataka for 2025-26, State Rural Development and Panchayat Raj Minister (RDPR) Priyank Kharge has written to Union Rural Development Minister Shivraj Singh Chouhan seeking immediate release of funds. In the letter dated May 23, Mr. Kharge has sought the Union Minister's urgent intervention to immediately release the pending wage, material, and administrative funds for the current fiscal. 'The Karnataka government remains firmly committed to the effective implementation of this vital programme, which plays a crucial role in providing livelihood security to rural households across the State. In compliance with the scheme's requirements, the Rural Development Commissionerate has submitted all necessary utilisation certificates and supporting documents to the Ministry of Rural Development. However, the State is facing severe financial and administrative constraints due to the non-release of funds,' the letter stated. Elaborating on the non-release of funds across the administrative component, Mr. Kharge has said in the letter that salaries for field-level staff and functionaries have remained unpaid since December 2024, leading to significant financial hardship for the personnel. 'This delay is severely affecting the routine operations, supervision, and on-ground implementation of the scheme. Field functionaries have been submitting multiple requests to the headquarters for the immediate release of their pending salaries to cover essential expenses such as their children's school admission fees, rent, and loan EMIs,' the letter stated. On the technical challenges in fund flow, the letter stated that the mandated migration to the Single Nodal Agency system and integration with the SPARSH platform and NREGASoft have created operational bottlenecks. 'These system-level transitions, though well-intended, have led to delays in fund disbursement to the State,' the letter pointed out. Stating that no material funds have been released in the current financial year, he said in the letter: 'This has resulted in pending bills amounting to ₹787.2 crore. Additionally, wage liabilities of around ₹600 crore are outstanding, despite the fact that demands have been raised as per actual work progress.' Officials from the Rural Development Commissionerate have consistently pursued this matter through formal letters, telephone follow-ups, and personal visits to the Union Rural Development Ministry. They have also raised concerns during virtual meetings. 'In light of the above, I urge your urgent intervention for the immediate release of the pending wage, material, and administrative funds. Timely disbursement is essential to ensure the livelihood security of lakhs of rural workers and also maintain the administrative efficacy and trust in this important national programme,' Mr. Kharge's letter added.

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