Budget: Despite rise in unemployment, 25% cut in rural job scheme allocation

Tribune News Service

Ravi S Singh

New Delhi, February 1

The Union Budget 2022-23 has increased the fund allocation for the Department of Rural Development to over Rs 1,35,944 crore, but allocation for the flagship Mahatma Gandhi National Rural Employment Guarantee Scheme is at least 25 per cent lower than revised estimates of the previous year.

The Centre has allocated Rs 73,000 crore for MGNREGA for 2022-23. This is 25.51 per cent less than the revised estimate of Rs 98,000 crore.

The move has surprised many considering the scheme proved a major job generator during the lockdown period in 2020. Only yesterday the Economic Survey noted that the demand for work under Mahatma Gandhi National Rural Employment Guarantee Scheme was an indicator of rural labour markets.

Aruna Roy, president, National Federation of Indian Women, said, “The country is facing an all-time high job crisis and the government did not think it necessary to allocate substantially for MGNREGA so that more work days could be provided to the distressed families. With current funds, after deducting expenses, the money will not be enough to provide even 25 days of work.”

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