Centre Caps MGNREGS Spending at 60% for First Half of FY 2025–26
For the first time since its inception, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been brought under the government’s Monthly/Quarterly Expenditure Plan (MEP/QEP), capping expenditure at 60% of the annual allocation for the first six months of FY 2025–26. The move marks a significant shift from the scheme’s demand-driven nature and could impact employment generation under the scheme, especially with Rs 21,000 crore in pending liabilities carried over from the previous year.
The Finance Ministry has, for the first time, applied MEP/QEP spending controls to MGNREGS, capping H1 expenditure at 60% of the total outlay.The move is aimed at better cash flow management, though the Ministry of Rural Development had initially opposed it. With pending dues from FY 2024–25 and a high labour demand projection, this cap could impact the scheme’s effectiveness in rural employment.
| Summary/Static | Details |
| Why in the news? | Centre Caps MGNREGS Spending at 60% for First Half of FY 2025–26 |
| Annual Budget (2025–26) | ₹86,000 crore |
| First Half Cap | 60% of outlay (₹51,600 crore) |
| New Policy Mechanism | Brought under MEP/QEP |
| Pending Liabilities | ₹21,000 crore |
| H1 Employment Target | 133.45 crore persondays |
| Expenditure till June 8 | ₹24,485 crore (28.47%) |
| Launched | 2006–07 (200 districts), nationwide by 2008–09 |
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