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MGNREGA scheme faces fund shortage
Why is it in the news ?
- The Mahatma Gandhi National Rural Employment Guarantee Act scheme is facing a severe fund crunch,with 99% of money allocate already exhausted three months before the end of the financial year.
- Also 11 States and Union Territories having a negative net balance.
More in the news
- Studies analysing government data show that the scheme faces difficulties in meeting the demand for work and paying wages on time.
- These issues are likely to be exacerbated by the current fund crisis.
- The scheme’s financial statement shows that as on Saturday, the total availability of funds was Rs.59,032 crore.
- The total expenditure, including payment due, stands at Rs.58,701 crore.
- That leaves a slim margin of only Rs.331 crore. For 11 States, that margin is nonexistent, as their accounts are already in the red.
- The study has also found that employment provided was already 32% lower than work demanded during 2017-18.
Source
The Hindu.