MGNREGA Normalizes Post-Pandemic, State Disparities Emerge

• MGNREGA spending is returning to pre-pandemic levels, with expenditure-to-GDP projected to fall to 0.24% by FY26 from a peak of 0.56% in FY21.
• Actual expenditure decreased from Rs 1.11 lakh crore in FY21 to Rs 90,806 crore in FY23, reflecting cooling distress-led demand.
• State-level implementation varies: Southern and Northeastern states efficiently meet demand, while Haryana, Gujarat, and Jharkhand have lower fulfilment ratios. Uttar Pradesh significantly improved.
• Households completing 100 days of work sharply declined to 1.3% nationally in 2025-26, down from 8.4% at the pandemic's peak.
• Some states like Maharashtra, Odisha, and Jharkhand still show higher completion rates, indicating MGNREGA's continued role as an income stabiliser in areas of rural stress.

Why It Matters: MGNREGA's normalization and state shifts reveal India's uneven rural economic recovery.