Govt may raise MGNREGA spends amid flood distress

Bihar, Uttar Pradesh, Himachal Pradesh and Punjab are still reeling from widespread flooding

- Rhik kundu

Data from the rural development ministry show that 20.12 million households sought employment under MGNREGA in April this year.

(PT)

The government is reassessing the budget for its flagship rural jobs guarantee scheme amid worsening distress following widespread floods across Bihar, Uttar Pradesh, Himachal Pradesh and Punjab, two people familiar with the matter told Mint.

The outlay for the scheme under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been unchanged at ₹86,000 crore for two consecutive fiscal years. The amount may be raised as officials examine whether extra funds are needed to meet surging job demand in flood-affected regions where agricultural work has been disrupted.

“Floods have left large stretches of farmland unusable in some states, pushing labourers in some states to seek fallback employment through MGNREGA,” one person said, requesting anonymity. “Expenditure trends and ground-level demand for the scheme are being evaluated before deciding if more funds will be required.”