What Centre Said On MGNREGS Fund Disbursal, Pending Dues, And Release Measures (image:facebook.com/ChouhanShivraj)

New Delhi: In the current Financial Year, Rs 44,323 Crore so far has been released to the States under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) including the pending liabilities of the previous year, Minister of Rural Development, Shivraj Singh Chouhan told Parliament on Tuesday, July 22.

In response to questions filed by Lok Sabha MPs E Tukaram and Rajiv Pratap Rudy, Minister responded in detail about the disbursal of MNREGA funds, the details and total amount of Central share pending for disbursals and corrective measures taken by the Government to ensure release of funds.

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MGNREGS is a demand driven wage employment scheme, and as per the demand for work on the ground the Central Government is committed to making funds available to States/UTs for the implementation of the Scheme.

Minister details how the funding of the programme works. The Central government pays 100% for administrative components, i.e., workers’ wages and the running of the scheme. Meanwhile, for material components used in projects, the Centre pays 75%, and State and Union Territories pay the remaining 25%. The Central Government sends the funds under materials and administration to the State Government and State then sends that money on to its Districts. The Centre does not release material funds directly to the Districts, Minister explains.

“The Ministry seeks additional funds under Mahatma Gandhi NREGS from the Ministry of Finance as and when required for meeting the demand for work on the ground,” Singh said.

Minister also shared State/UT-wise details regarding Centre’s pending liabilities as of July 16, 2025. As per the data, Andhra Pradesh (Rs 2864.31 cr), Bihar (Rs 1680.13 cr), Maharashtra (Rs 1250.84 cr), Rajasthan (Rs 1687.39 cr), and Uttar Pradesh (Rs 1765.15 cr) come top in the total amount of Central share pending for disbursal.

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The government further lists the measures adopted to ensure the regular transfer of funds to States and the timely release of funds to implementing agencies. It includes Public Financial Management System (PFMS), Direct Benefit Transfer (DBT), comprehensive Standard Operating Procedure (SOP), capacity building of the field functionaries, and regular reviews.