States may have to fund for MGNREGA wages
Welfare schemes
News
According to the Centre, the states may have to fund MGNREGA wages.
Important facts
Financial issues
- The financial statement of MGNREGA scheme shows that as on January 30, 19 States and Union Territories had liabilities.
- Nationally, the scheme has a negative net balance of ₹4,101 crore.
- 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.
- 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.
- 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
