MGNREGS unlikely to see higher allocations in FY25 with improvement in rural economy
Live MintNew Delhi: The national rural job guarantee scheme that gives millions of the poorest Indians employment is unlikely to see a higher allocation in FY25, two people aware of the matter said, citing government hopes of an improvement in the rural economy this year on the back of better rains. Allocations for the Mahatma Gandhi National Rural Employment Guarantee Scheme – considered a lifeline for the rural poor – are unlikely to be increased during FY25, the first person mentioned above said. The total number of households employed under MGNREGS in the same period of FY25 stood at 44.3 million, compared with 60 million in all of FY24 As things stand, the Mahatma Gandhi National Rural Employment Guarantee Act provides a minimum of 100 days of guaranteed wage employment in a financial year to the poorest households in rural India. Experts said allocations towards MGNREGS are directly linked to the state of the rural economy, with demand for jobs under the scheme going up when the rural economy is not doing well.