Centre should release MGNREGA funds to West Bengal, says Parliamentary Standing Committee

Nikesh Vaishnav
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File picture of MGNREGA workers at Purulia, West Bengal

File picture of MGNREGA workers at Purulia, West Bengal
| Photo Credit: Debasish Bhaduri

Observing that the denial of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) funds has resulted in severe consequences in West Bengal, a report of the Standing Committee on Rural Development and Panchayati Raj has recommended the Centre to release the funds to the State.

“The continued suspension of funds has resulted in severe consequences, including a sharp increase in distress migration and disruptions in rural development initiatives. This has had a significant adverse impact on the livelihoods of rural populations, exacerbating economic hardships in the state. The Committee strongly recommended that West Bengal receive its rightful dues for all eligible years, except for the year currently under dispute in court,” the report, which was tabled in the Parliament on March 12, stated.

The report by the Committee headed by Congress MP Saptagiri Sankar Ulaka also added the pending payments must be released without delay to ensure that ongoing rural development projects are not stalled and that intended beneficiaries do not suffer due to financial constraints.

Funds to the MGNREGA have been stalled for the past three years since March 2022, after the Centre invoked Section 27 of the MGNREGA 2005 which allows for stoppage of funds for violation of rules in implementation of the scheme by the State.

The standing committee report also mentioned that the Centre has informed that the decision on release of funds of amount ₹7,888.67 crore to West Bengal in current FY (2024-25) is pending with competent authority.

The funds to MGNREGA have been stopped on allegations of corruption in the implementation of the scheme, and the issue has strained Centre State ties with the Trinamool Congress holding protests both in Delhi and in West Bengal. Chief Minister Mamata Banerjee had written several letters to the Centre over release of funds and announced a separate scheme Karmashree providing jobs to rural population in the State.

In January 2024, the Calcutta High Court directed the setting up of a four-member team for an expeditious verification of MGNREGA job cards on a district-wise basis in West Bengal.

Paschim Banga Khet Majoor Samity (PBKMS), an agricultural workers union, welcomed the strong recommendation of the committee calling for the immediate release of all pending MGNREGA funds to West Bengal. “The Committee’s Demand for Grants report for 2025-26 highlights the devastating impact of the prolonged fund suspension on rural workers and urges the Government of India to clear all dues, except for the years currently under dispute in court,” the PBKMS said in the statement.

Purbayan Chakraborty, an advocate who has represented PBKMS before Calcutta High Court in matter involving release of MGNREGA funds said that the continued denial of funds over the past three financial years has severely impacted the livelihoods of lakhs of MGNREGA workers, leading to increased distress migration and deepening economic hardship in rural areas.

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