<h1>MGNREGA funding stagnation reduces real allocations and limits wage increases, significantly weakening rural livelihood support.</h1> Congress argues that keeping MGNREGS allocations at the same nominal level as the prior year results in a real-term decline in funding, with a sizeable portion of the budget used to clear past dues. This constrains the scheme's reach, limits wage increases for workers, and weakens MGNREGS' capacity to provide guaranteed employment and support rural livelihoods.