First, Center Cap MGNREGS spends 60% for the first six months of FY 2025-26

The Finance Ministry introduced MEP/QEP in 2017 to help the ministries to manage cash flow and avoid unnecessary borrowings. MGNREGS remained out of its realm so far, the Ministry of Rural Development argued that the demand for the plan-run nature made the fixed expenses unnatural caps. But at the beginning of the 2025–26 financial year, the Ministry of Finance has directed Mangregs to include MGNREGS with the MGNREGS with the MEP/QEP framework.

It is learned that the Ministry of Rural Development (Mord) had presented its MEP/QEP Finance Ministry Budget Division for MGNREGS, proposed a high spending limit for the first two quarters of 2025-26. However, the Finance Ministry did not agree.

Following several rounds of communication between the two ministries, the Finance Ministry informed Mord on 29 May that it could spend up to 60 percent of the annual outlay of MGNREGS in the first half of the financial year – “Looking at the immediate need for spending during the first half.” This means that by the end of September, only Rs 51,600 crore will be available for the plan.

Although the hat, who spends 60 percent, may not have made any difference in most years-it is believed that in the first-half expenditure, it is usually 50 to 60 percent (53.5 percent in 2024-25, 60.51 percent in 2023-24, 60.51 percent, 2022-23, 60.83 percent in 60.83 percent, 53.79, and 53.79 percent in 54.79 percent. Under the guarantee scheme, employment can affect generation, due to a significant carrot of pending liabilities of Rs 21,000 crore from the last financial year.

According to government sources, an important part of this year’s MGNREGS allocation will move towards cleaning the liabilities pending from the previous financial year, which limits the scope of generating target numbers targeting. The term refers to the number of days of work done by individuals under the “Perseade” scheme.

For 2025-26, the Ministry of Rural Development has approved the labor budget of persons worth 198.86 crore. Of this, 67.11 percent or 133.45 crore person – is estimated to be built in the first half of the financial year. By June 8, 2025, the Center has released Rs 24,485 crore, which is 28.47 percent of the total allocation of MGNREGS worth Rs 86,000 crore for the year.

Finance Ministry officials are also learned to raise questions about pending liabilities from last year. Citing the provisions of the MGNREGA Act, 2005 – which the mandate should be paid within 15 days – he questioned how the dues of more than Rs 21,000 crore were still pending for the last fortnight (March 15–31) of the financial year of 2024-25.

2006-07 was launched in 200 of the country’s most backward rural districts, MGNREGS was expanded to 130 more districts in 2007–08 and nationwide rolls in 2008-09. The scheme saw an increase in demand during 2020-21, when a record 7.55 crore rural families worked under the outbreak of Kovid -19. It became a major security trap for migrant workers returning to their villages during lockdown. Since then, the number of families employed under the scheme has declined continuously-7.25 crores in 2021-22, 6.18 crore in 2022-23, 5.99 crore in 2023-24, and 5.79 crores in 2024-25. These figures do not include the beneficiaries of West Bengal, where the scheme has been suspended since March 2022.