States may have to fund for MGNREGA wages

States may have to fund for MGNREGA wages

Welfare schemes


According to the Centre, the states may have to fund MGNREGA wages.

Important facts

Financial issues

  1. The financial statement of MGNREGA scheme shows that as on January 30, 19 States and Union Territories had liabilities.
  2. Nationally, the scheme has a negative net balance of ₹4,101 crore.
  3. The Rural Development Ministry received a supplementary additional allocation of ₹6,084 crore. However, this is not adequate as after paying off liabilities, states would be left with a small amount.
  4. The fund crunch has already resulted in extensive wage payment delays. MGNREGA data shows that 81% of Fund Transfer Orders (FTOs) generated in January 2019 and 43% of FTOs from December 2018 still remain unprocessed by the Centre.
  5. This might necessitate states to fund MGNREGA themselves. West Bengal, Madhya Pradesh and Karnataka are among the States that are likely to use their own funds to pay workers
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