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MGNREGS: Bengal's loss is TN, UP, Bihar's gain

Financial Express Hyderabad

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June 04, 2025

Release of funds to Bengal has ceased since 2022

- PRASANTA SAHU

ALLEGATIONS OF RAMPANT misappropriation of funds under the flagship Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) may have cost West Bengal over ₹22,000 crore in assistance under Centre's flagship scheme during FY23-FY25.

The bulk of these funds have likely been redistributed among Tamil Nadu, Uttar Pradesh, Bihar, and Maharashtra.

These four states got an additional ₹13,000 crore during the three years, even though the Centre's annual spending on the scheme largely remained stable around ₹86,000-88,000 crore. The outlay for FY26 is ₹86,000 crore.

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