Budget News: The upcoming budget for FY2025 is expected to allocate Rs 88,000 crore for the rural employment guarantee scheme, marking a 47% boost from the current fiscal year. The government is responding to the surge in demand for employment and an increase in wage rates.
An additional Rs 16,143 crore was allocated for the flagship rural employment scheme in December. Sources said that an additional Rs 10-12,000 crore is likely to be spent, bringing the total outlay to nearly Rs 88,000 crore till March 31 this year.
In the upcoming interim budget for FY25, the Indian government is expected to allocate around ₹88,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), compared to the budgeted ₹60,000 crore for the current fiscal year. The allocation may increase if demand exceeds initial expectations.
The individuals who sought work under MNREGS in December represented 19.97 million households, down 5.7% from 21.18 million households a year earlier. Demand for work under the MGNREGS moderated for a second straight month in December from a year before. Most of the demand came from Tamil Nadu (3.35 million), Rajasthan (2.60 million), Madhya Pradesh (2.38 million), Uttar Pradesh (2.34 million) and Bihar (1.59 million).