New Delhi, Aug 11 (PTI) A parliamentary panel on Monday questioned the government's rationale behind not increasing the allocation of funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and expressed concern over the fact that the allocation for the scheme has been kept "static" since the revised estimates of 2023-24.

In a report tabled in Parliament on Monday, the Department Related Parliamentary Committee on Rural Development and Panchayati Raj said proper implementation of the scheme depends on "timely and adequate" allocations.

"The Committee are concerned to note that the allocation of funds under MGNREGA have been kept static at Rs 86,000 crore since the Revised Estimates for 2023-24," the panel said in an action-taken report.

It said since the scheme ensures employment to rural poor and the downtrodden sections of the society, its proper implementation totally hinges upon timely and adequate allocation of funds to all the states and Union territories.  "Keeping this in view, the Committee are unable to comprehend the rationale for not increasing the allocation of funds under MGNREGA since 2023-24," it said.

The panel said with the MGNREGS being a demand-driven scheme, it had recommended to the Department of Rural Development (DoRD) that the requirement for fund allocation should be looked afresh and the funds can be raised at the Revised Estimates stage accordingly.  In its action-taken reply, the DoRD said the release of funds to states is a continuous and demand-driven process.

The DoRD said the Centre is committed to ensuring the timely availability of funds based on the actual requirement for work on the ground, and as and when additional financial requirements arise, the ministry continues to engage with the Ministry of Finance for the provision of requisite funds.

The committee, however, said it finds the reply "stereotypical in nature, delineating only the provisions of the scheme without addressing the core issue with the seriousness it warrants".

"The Committee, therefore, feel that there is an immediate need for a much more concerted and synchronised action between the nodal ministry and Ministry of Finance to ensure uninterrupted implementation of the scheme," it said.

"In view of this, the Committee reiterate their recommendation for increased allocation of funds to MGNREGA to achieve its targets," it added.

According to budget documents, an amount of Rs 89,153.71 crore was spent on the MGNREGS in 2023-24. In 2024-25, an amount of Rs 86,000 crore was allocated to the flagship scheme in the budget and the revised estimate later that year was also Rs 86,000 crore. In 2025-26, the allocation for the scheme was again Rs 86,000 crore.  PTI AO RC

Demand-driven funding concern: panel urges increased MGNREGA allocations to ensure timely, uninterrupted implementation of rural works. Parliamentary scrutiny focuses on retaining MGNREGA allocations at the same level since the Revised Estimates for 2023-24 and stresses that the scheme's demand-driven design requires timely and adequate funding. The Committee questions the rationale for a static allocation, urges increased funds to meet targets, and finds the Department's reply-that releases are continuous and demand-based-stereotypical, calling instead for enhanced synchronisation between the nodal ministry and the finance ministry to ensure uninterrupted implementation.