Demand for work under MGNREGS eased in November after a five-month surge, indicating a slowdown in unskilled labor demand possibly due to increased industrial activity. This dip might alleviate pressure on additional budget allocation after exhausting the FY24 ₹60,000 crore outlay. November saw a 6.6% drop in individuals (20.98 million) and a 4.5% decline in households (17.7 million) seeking work compared to last year. Sequentially, both individuals and households seeking work decreased by 4.2% and 3.6%, respectively, from October levels.
The forest department claims that the control measures existing within the MGNREGS will also bring much needed accountability and transparency in the tree plantation drives held in the state.
Relatively strong work demand, wage hikes and inflation could push up expenditure under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in FY25, a person aware of the details told ET.
MGNREGS wages of about ₹35,000-40,000 crore are estimated to have gone into the construction of houses under the PMAY (Gramin) since the scheme was rolled out in November 2016 by revamping the erstwhile India Awas Yojana, said the person. House construction has picked up pace in the last two years, pushing up the MGNREGS wage costs on such an account.