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MGNREGA Families Rise, Work Days Fall; Budget Cuts a Major Issue

LibTech India study shows MGNREGS coverage expanded, but average work days per household declined.

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), India’s largest public job guarantee program, has seen an increase in registered households but a drop in workdays provided, according to a recent report. While registered families grew by 8.6%, average employment days fell by 7.1%.

The study, released on May 19, 2025, by LibTech India a group of academics and social activists—revealed that only 7% of households received the full 100 days of work promised under MGNREGA. Registered families rose from 13.8 crore in FY 2023-24 to 14.98 crore in FY 2024-25. However, average employment per household declined by 4.3%, from 52.42 person-days to 50.18 person-days.

State-wise disparities were stark: Odisha (-34.8%), Tamil Nadu (-25.1%), and Rajasthan (-15.9%) saw the sharpest declines, while Maharashtra (+39.7%), Himachal Pradesh (+14.8%), and Bihar (+13.3%) recorded increases.

Budget Cuts Worsen Crisis:
LibTech attributed the drop in employment to reduced funding and delayed wage payments. A parliamentary standing committee on rural development had earlier flagged these issues. Despite advocacy group PAEG recommending ₹2.64 lakh crore for FY 2023-24, the Centre allocated only ₹86,000 crore a figure unchanged in FY 2024-25.

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