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Centre releases Rs 12,230 crore for MGNREGA

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Ministry of Rural Development has released a central share of Rs. 12,230 Crore to the States in connection with the implementation of its flagship programme Mahatma Gandhi National Rural Employment Guarantee Act. This is the biggest amount for the scheme released in one go by the ministry.

Centre releases Rs 12,230 crore for MGNREGA

  • The Minister also underlined that this fund release will take care of the pending wage liability of the States for the previous Financial Year (2015-16) and help the States to run the Programme during the new Financial Year (2016-17).
  • The Ministry has also planned to maintain 60:40 wage-material ratio at the District level now to ensure creation of good quality assets in the rural areas.
  • To avoid the delay in payment of wages, the Cabinet made decision to introduce National electronic Fund Management System (NeFMS) in this fiscal.
  • In 2016-17 the States have also proposed to construct 33 lakh Individual House Hold Latrines (IHHL) as part of Swachh Bharat Mission and 63,000 Anganwadi centre buildings to strengthen rural infrastructure.


  • MGNREGA, which is the largestwork guarantee programme in the world, was enacted in 2005 with the primary objective of guaranteeing 100 days of wage employment per year.
  • The government has increased the number of workdays under the rural job guarantee scheme from 100 to 150 in drought-affected areas.
  • Employment must be provided with 15 days of being demanded failing which an ‘unemployment allowance’ must be given.