Centre releases Rs.17,744 cr for MGNREGA wages

The Centre has released over Rs 17,744 crore as the first instalment towards the wage component for workers through direct benefit transfer under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for 2026-27, a senior official confirmed.
For FY27, Rs 30,000 crore has been allocated to MGNREGA to clear pending dues before shifting to the upcoming VB-GRAMIN initiative, which has a budget of Rs 95,692 crore.
By March 11, 2026, over Rs 81,500 crore was released for the financial year 2025-26, including Rs 65,875 crore for wages and Rs 15,627 crore for material and administration costs.
While employment saw a monthly dip in early FY27, as many as 43 crore person-days were approved for May 2026, higher than 30 crore person-days for April. Funds are directly credited to worker accounts via Direct Benefit Transfer (DBT), ensuring transparency.
The government is transitioning to the VB-GRAMIN initiative, which promises 125 days of employment and higher wages.
A senior official said Viksit Bharat – G RAM G is an upgrade of MGNREGA and balances the interests of farmers and labourers by providing a statutory guarantee of 125 days of employment instead of 100 days, along with better wages, unemployment allowance and legal safeguards such as payment of interest in case of delays.
The Central Government has made the largest-ever budgetary provision of Rs 95,692 crore for the Viksit Bharat – G RAM G scheme, representing the Centre’s share.
The Centre has released more than Rs 7.81 lakh crore over 10 years from 2014-15 to 2024-25 under MGNREGA, resulting in creation of 8.07 crore rural assets, compared to Rs 2.13 lakh crore and 1.53 crore assets in the previous decade.
Person-days of employment rose by 82 per cent to 3,029 crores, while allocation increased from Rs 1,660 crore in 2013-14 to Rs 86,000 crore in 2025-26.
Works under MGNREGA include agriculture, natural resource management and rural infrastructure. Water conservation efforts reduced water-stressed blocks by 35 per cent, while over 68,000 Amrit Sarovars were created.