As NREGA Funds Dry Up, Wage Dues Mount
The Hindu Business Line|January 29, 2020
‘Despite the job scheme’s success in boosting disposable income in rural areas, govt intentionally ignoring it’
Maitri Porecha
As NREGA Funds Dry Up, Wage Dues Mount

With Central funds for paying workers under the National Rural Employment Guarantee Scheme (NREGS) drying up, wage dues are accumulating, Public Financial Management System (PFMS) data accessed from the Ministry of Rural Development’s NREGS portal show.

As on January 27, 91 per cent of wages, involving 2.03 crore transactions running to ₹2,802.59 crore, were pending for the current month. In December, 53.87 per cent was pending, involving 1.3 crore transactions, running to ₹1,765.78 crore. In October and November, the pendency hovered between 29 and 32 per cent.

“Every financial year, from the third quarter onwards, funds for NREGA dry up. As a result, work slows down and delays in wage payments escalate. Every year, about 20 per cent of the NREGS budget is used to clear arrears. This cycle continues and adversely affects workers in the peak season in the final quarter,” said Debmalya Nandi, a public policy researcher and member of NREGA Sangarsh Morcha.

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