Centre Caps Rural Funds: Southern States' High Spending Triggers MGNREGA Revamp

News
M
Moneycontrol•18-12-2025, 14:45
Centre Caps Rural Funds: Southern States' High Spending Triggers MGNREGA Revamp
- •Central government revamps MGNREGA to Viksit Bharat - G-RAM-G Bill, 2025, shifting from 'demand-driven' to 'supply-driven'.
- •New scheme fixes annual Central allocation; states bear extra costs, changing 100% wage/75% material funding to 60:40 Centre-State share.
- •Official cites southern states like Tamil Nadu, Kerala, Karnataka for exceeding spending estimates, receiving higher allocations despite lower populations.
- •FY25 data shows Tamil Nadu received highest MGNREGA allocation (Rs 9,843 crore), followed by UP (Rs 9,147 crore) and Andhra Pradesh (Rs 7,315 crore).
- •NREGA Sangharsh Morcha criticizes the changes, warning of financial strain on states and potential for reduced employment.
Why It Matters: Centre revamps MGNREGA to control spending, shifting burden to states, sparking criticism.
✦
More like this
Loading more articles...




