Cut in MGNREGS outlay is not a concern: Finance Secretary Somanathan
The Hindu
Since MGNREGA is a demand-driven scheme, the Finance Secretary said that Budget allocations will be revised upwards during the year if there is a higher demand.
Finance Secretary T.V. Somanathan on Thursday defended the reduction in Budget 2023-24 allocations for the Mahatma Gandhi National Rural Unemployment Guarantee Act (MGNREGA) scheme, stressing that the economy is in a better shape and there has been an enhancement in rural outlays under other schemes which will generate similar work opportunities.
The Union Budget presented this Wednesday has allocated ₹60,000 crore for MGNREGA in 2023-24, 18% below this year’s Budget Estimates and almost 33% lower than the Revised Estimates of ₹89,00 crore.
“We have major increases in allocations this year in the PM Awas Yojana ( Grameen) which is even larger than the PM Awas Yojana (PMAY) as a whole,” Mr. Somanathan explained in an interview with The Hindu. Allocations for the housing scheme are up 66% to ₹79,000 crore, but within that the Grameen or rural component is up over 100%, he emphasised.
“There’s also a big increase in Jal Jeevan Mission and the area where this is spent is the same area where MGNREGA is in operation. So roughly ₹40,000 crore extra is going through these sources into the rural areas through the central government’s own programs,” he pointed out, noting these spends will “obviously have some effect” on demand for MGNREGA work as they will be for the same type of people with similar type of jobs .
“So we will definitely see some reduction in demand in terms of the actual availability of employment in those areas through these two big programs. Third, the economy is doing much better than 2020. So the normal economic push will also be in favour of lower MGNREGA demand,” he underlined.
Since MGNREGA is a demand-driven scheme, the Finance Secretary said that Budget allocations will be revised upwards during the year if there is a higher demand.