New Delhi: Even as the National Democratic Alliance (NDA)-led Union government prepares to introduce a new Bill to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), official data shows that States are still awaiting over Rs 13,210 crore in pending MGNREGA dues.
The proposed legislation, titled ‘The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen)’, or VB G RAM G, is likely to be introduced in the Lok Sabha on Tuesday.
According to data from the Union Ministry of Rural Development, as of November 26, the Centre has yet to release Rs 1,687.27 crore towards wages, Rs 8,008.48 crore for material costs, and Rs 431.83 crore for administrative expenses under the MGNREGA to States and Union Territories, excluding West Bengal.
In the case of West Bengal, where the Centre stopped releasing funds in March 2022, pending liabilities stood at Rs 3,082.52 crore, as per official data available till that period.
The data further shows that the Centre released Rs 68,393.67 crore to States and Union Territories under the MGNREGA during the current financial year.
Opposition Slams VB G RAM G Bill
Congress leader Priyanka Gandhi Vadra on Monday criticised the government’s move, questioning the intent behind removing Mahatma Gandhi’s name from the flagship rural employment scheme.
“Whenever a scheme’s name is changed, there are extensive changes required in offices and stationery, which involves public expenditure. What is the benefit of this exercise, and why is it being done?” the Congress MP asked.
Tamil Nadu Chief Minister M K Stalin alleged that the Bill was aimed at “destroying and dismantling” the existing rural employment framework. In a post on X, Stalin claimed that while MGNREGA currently receives 100% funding from the Union government, the proposed scheme would reduce central funding to 60%.
CPI(M) MP John Brittas also criticised the Bill, stating that the removal of Mahatma Gandhi’s name was “only the trailer,” while the real damage lay in altering the core structure of the law.
“The government has removed the soul of a rights-based legal guarantee and replaced it with a conditional, centrally controlled scheme stacked against States and workers,” Brittas said.
He pointed out that although the Bill promises 125 days of employment, the proposed 60:40 funding model would place a significant financial burden on States, unlike MGNREGA, where unskilled wages were fully funded by the Centre.
Calling the move “cost-shifting by stealth, not reform,” Brittas said States would collectively have to bear an additional burden of over Rs 50,000 crore, with Kerala alone facing Rs 2,000–2,500 crore in extra expenditure. He also warned that replacing a demand-driven legal guarantee with pre-fixed central allocations could undermine workers’ rights. “When funds run out, rights run out,” he said.
