Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme faces funds crisis nearly 99 percent of the cash has been spent. Just 2,500 crores of rupees has been made to maintain the strategy for the subsequent two weeks. It premiered in 2005 throughout the National Rural Employment Guarantee Act, 2005. It intends to present guaranteed 100 times of wage funds annually to every rural home, which may then help to increase livelihood security of family in rural regions of India. It supplies function to all part of the society and aid in societal inclusion of girls, SC and STs (Minimum one-third of their employees should be girls ).It is a demand driven strategy. The Act now covers most districts with the exception of the ones which possess a 100% metropolitan inhabitants.
Studies assessing government statistics reveal that the strategy faces problems in fulfilling the requirement for job and paying salaries in time. These problems are very likely to be exacerbated with the present fund catastrophe, based on concerned economists, researchers and employees on the ground.
In line with this financial statement, 15 states have been in red significance, there’s fund depletion or finance unavailability. Among all the states, Rajasthan gets the greatest negative net balance of Rs 620 crores. The funding allocated to the strategy was Rs 60,000 crores and will be significantly less compared to previous decades. The impending dues from the state of Rajasthan is Rs 1,950 crores. Under the strategy, 75 percent of the salary should be paid in 15 weeks of period interval. But, there’s delay in the payment now as a result of lack of money. This will produce shortage of confidence among the taxpayers within the strategy.