Parliamentary Panel Flags Delays In MGNREGS Wages Across States, Urges Centre To Release Bengal's Dues
According to data shared by the union ministry of rural development (MoRD) in response to the panel’s query on pendency in wages, a total of Rs 12,219.18 crore have been pending as wages, while Rs 11,227.09 crore are liabilities pending in terms of material component...Read More
A parliamentary panel on Rural Development and Panchayati Raj has expressed concern over “persistent delays" in the disbursement of the Centre’s share of funds under the wage and material component of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) across states and union territories.
According to data shared by the union ministry of rural development (MoRD) in response to the panel’s query on pendency in wages, a total of Rs 12,219.18 crore have been pending as wages, while Rs 11,227.09 crore are liabilities pending in terms of material component for 34 states and UTs as of February 15, 2025.
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Bihar, UP, Tamil Nadu among most-affected states
Data shows that the pendency in the Centre’s share for wages is highest among large states, including Bihar, Uttar Pradesh (UP), and Tamil Nadu (TN)—Rs 1,013.79 crore, Rs 1,485.12 crore, and Rs 2,156.10 crore, respectively.
Queries about various schemes being implemented by the MoRD were made by the panel during its examination of the Demand for Grants (2025-26).
“As per the information provided by the MoRD as per February 15, 2025, the total pending liabilities including both wage and material component stands at Rs 23,446.27 crore. This accounts for 27.26% of the current budget, meaning that more than one-fourth of the allocated funds will be used to clear the previous year’s dues," the panel stated in its report released on Wednesday.
It further stated that consequently, the actual working budget for the current financial year is reduced to Rs 62,553.73 crore, significantly limiting the scheme’s capacity to function effectively and meet its primary objective of preventing rural distress and livelihood security.
The committee observed that even though the ministry has cited the reason for pending wages as “non-receipt of required documents", this delay created hardships for rural workers.
Funds to Bengal for 2022-23 and 2023-24 stalled
The panel observed that no central funds have been released to West Bengal under MGNREGS as well as various other schemes, including the Pradhan Mantri Aawas Yojana-Gramin (PMAY-G) for the financial years 2022-23 and 2023-24 and the current financial year.
The Centre has stopped disbursement of funds under MGNREGS to West Bengal since 2022 over alleged irregularities in the functioning of the scheme in the state. The Centre has also sent teams to review the working of the scheme in Bengal at several instances over the past two years. However, the action-taken reports filed by the state on the alleged irregularities have been found “unsatisfactory" by the central government, and hence the funds remain withheld. A matter is also pending in the court in this respect.
The ministry, replying to the panel, stated that its decision to release funds amounting to Rs 7,888.67 crore to West Bengal under PMAY-G for the current financial year is “pending with competent authority".
The panel noted that the continued suspension of funds has resulted in severe consequences, including a “sharp increase in distress migration" and disruption in rural development initiatives.
“The committee recommends that WB receive its dues for all eligible years except for the year currently under dispute in court," it said.
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