Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a demand driven wage employment programme. The Ministry releases funds to the States/UTs on the basis of the agreed to Labour Budget, opening balance, pending liabilities of the previous financial year, if any, and overall performance. Fund release to States/UTs is a continuous process and Central Government is committed in making funds available keeping in view the demand for work. The Ministry seeks additional fund as and when required for meeting the demand for work on the ground.
Under MGNREGA, Government is spending money for two components, i.e., material component and labour component. Government spending on the labour component is more than the material component under MGNREGA.
Under MGNREGA, Percentage of expenditure on material component was 26.15 during 2016-17. It has increased by 3.41% during 2017-18 over 2016-17. Percentage of expenditure on material component was 29.23 during 2018-19 under MGNREGA, down by 0.33 against 29.56 during 2017-18.
Under MGNREGA, Percentage of expenditure on labour component was 73.85 during 2016-17. It has decreased by -3.41% during 2017-18 over 2016-17. Percentage of expenditure on labour component was 70.77 during 2018-19 under MGNREGA, up by 0.33 versus 70.44 during 2017-18.
Note: Source: RAJYA SABHA SESSION – 249 STARRED QUESTION NO. 88; MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act.
Resource Title: Percentage of Expenditure on the Material Component and Wages Component under MGNREGA from 2016-17 to 2018-19 (From : Ministry of Rural Development)