The Central government has released ₹44,323 crore to States and Union Territories under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the current financial year 2025-26, according to a written statement in the Lok Sabha on Tuesday.
Rural Development Minister Shivraj Singh Chouhan, responding to a question by MP T. M. Selvaganapathy, said the funds cover wage, material, and administrative components of the scheme. He reiterated that the Centre has maintained the MGNREGS allocation at ₹86,000 crore for FY26, matching the highest-ever annual allocation, which was also made in FY25.
Dispelling speculation about the discontinuation of the scheme, Chouhan clarified, “There is no such proposal. Continuous efforts are being made to strengthen implementation of the scheme at the ground level.”
The Minister underscored MGNREGS’ core objectives, including guaranteed employment, creation of durable and quality assets, support for rural livelihoods, promotion of social inclusion, and reinforcement of Panchayati Raj institutions.
In response to concerns about alleged underfunding, Chouhan maintained that MGNREGS is a demand-driven scheme. “The Ministry of Rural Development monitors employment demand at the ground level and seeks additional funds from the Ministry of Finance when required,” he said.
Regarding claims from some state governments about delays in fund disbursal, Chouhan clarified that wage payments are directly transferred by the Centre into beneficiaries’ accounts via Direct Benefit Transfer (DBT).
For material and administrative expenses, he said, States and UTs must submit fund release proposals. “Funds are released periodically in two tranches, based on factors such as the ‘agreed to’ Labour Budget, demand for works, fund utilisation, pending liabilities, performance, and submission of necessary documents,” the Minister added.
