Union Budget 2024-25 Allocates ₹86,000 Crore to MGNREGA Amidst Rural Distress Concerns
February 1, 2024
The interim Union Budget 2024-25 saw a significant increase in MGNREGA allocation to ₹86,000 crore, up from the previous year's ₹60,000 crore. This move comes amidst reports of rising rural unemployment and distress, particularly in the aftermath of uneven monsoons and global economic slowdowns. The increased allocation signals the government's recognition of MGNREGA's critical role as a safety net and a tool for demand generation in the rural economy. Aspirants should analyze the implications of this budget increase on employment generation, wage payments, and the scheme's overall effectiveness in addressing rural poverty and migration in the coming financial year. It also highlights the scheme's counter-cyclical nature.
UPSC Angle: Budgetary allocation trends, impact on rural economy, government's response to rural distress, fiscal federalism, effectiveness of social safety nets.