The Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is likely to touch Rs 74,000 crore in revised estimates for FY20, which is 23 percent higher than the budget allocation of Rs 60,000 crore, sources told CNBC-TV18.MNREGS, MNREGS spending, MNREGS totall fund allocation, MNREGS allocation, MNREGS budget allocation
The scheme was funded with Rs 6,000 crore from internal savings from other schemes under Ministry of Rural Development (MoRD) and about Rs 5,000 crore has been granted under supplementary demand, said the sources, adding that the MoRD is likely to seek another Rs 3,000 to 4,000 crore in the upcoming session of the parliament in February.
It is expected that FY21 budget allocation for MNREGS could be at least Rs 65,000 crore and another Rs 5,000 to 9,000 crore could be raised through supplementary demand or internal savings from other schemes in FY21.
The central government is now worried that the states are focusing more on utilising funds under MNREGS for wage cost and not adhering to 60:40 ratio of maintaining wage and material cost. “Except a few eastern states like Meghalaya, Manipur, Nagaland and West Bengal, none of the states utilise the MNREGS funds for material cost at 40 percent. West Bengal is the only state to use 43 percent of MNREGS funds for material cost and about 57 percent for wage cost,” said a source privy to the developments.
The Centre plans to push states to utilise MNREGS funds in the 60:40 ratio for wage and material cost to realise the target of creating long-lasting assets.
The budget allocation for Pradhan Mantri Awaas Yojnana (Rural) is expected around Rs 19,000 crore in FY21, same as FY20 allocation. However, the sources indicated that the government will have to seek external borrowing resources of Rs 25,000 crore to meet the target of building 1.95 crore houses in rural India by 2022.
External borrowing of Rs 25,000 crore made through NABARD for PMAY will be exhausted this financial year and fresh borrowing for the scheme will have to be made in FY21. FY20 target is to build 60 lakh houses in rural India of which sanctions have been made for 59 lakh houses by the ministry.Similarly, for Pradhan Mantri Gram Sadak Yojana, it is expected that allocation will remain Rs 19,000 crore for FY21, same as the last allocation. The target is to build 1.25 lakh kilometres road in the third phase in rural areas of which 20,000 kms has already been sanctioned to 14 states in FY20.