Decision to release Rs 7,888-crore PMAY-G funds to Bengal pending with ‘competent authority’: Rural Development Ministry
Parliament’s Standing Committee on Rural Development and Panchayati Raj says no central funds have been released to West Bengal under the MGNREGS and other schemes for 2022-23, 2023-24 and the current financial year.
This was communicated by the Ministry of Rural Development to the Standing Committee on Rural Development and Panchayati Raj. (Express File Photo) The Ministry of Rural Development has informed a parliamentary panel that the decision to release funds amounting to Rs 7,888.67 crore to West Bengal under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) during the current financial year (2024-25) is pending with the “competent authority”.
This was communicated by the Ministry of Rural Development to the Standing Committee on Rural Development and Panchayati Raj. During its examination of the demand for grants (2025-26) of the Department of Rural Development, the committee enquired about the “reasons for variation” in the allocation of various rural development schemes, including PMAY-G, at budgetary estimates (BE), revised estimate (RE), and advance estimates (AEs).
The department informed the committee that the PMAY-G budgetary allocation for 2024-25 was Rs 54,500.14 crore at the BE stage, which decreased to Rs 32,426.33 crore at the RE stage and Rs 17,731.96 crore at the AE stage.
Among the “reasons for low expenditure” under the PMAY-G, the department listed the following: “i. Progress and subsequent expenditure affected in the scheme due to General Election/assembly elections. ii. Maximum amount was released to the States/UTs in the last quarter of FY 2023-24, which is being utilised by States in the current year, affecting the expenditure under PMAY-G in Q1 of FY 2024-25. iii. Decision on the release of funds amounting to Rs 7,888.67 crore to West Bengal in the current FY is pending with the competent authority. iv. The scheme got an extension for the construction of an additional 2 crore houses in the second quarter of the current FY only, and after approval of the competent authority, new targets were also allocated to States/UTs in September 2024. This delays the release of funds under the scheme.”
Following the central department’s reply, the committee has “strongly” recommended that West Bengal be paid its rightful dues for all eligible years, except for the year currently under dispute in court.
“The Committee observe from the data on physical and financial progress provided by the Ministry that no central funds have been released to the State of West Bengal under MGNREGA and various other schemes for FY 2022-23, 2023-24, and the current financial year,” the committee said in its report to the department.
The committee said, “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 recommends that West Bengal receive its rightful dues for all eligible years, except for the year currently under dispute in court. Additionally, 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,” said the committee, headed by Congress MP Saptagiri Sankar Ulaka.
The Centre has suspended the release of funds to West Bengal under the Mahatma Gandhi National Rural Employment Guarantee Scheme for the past three years. It has also suspended the release of funds to West Bengal under the PMAY-G.
The Centre, invoking section 27 of the MGNREGA 2005, had stopped the release of funds to West Bengal with effect from March 9, 2022, “due to non-compliance with directives of the Central Government”. Since then, no work under the scheme has taken place in the state.
Responding to a starred question asked by TMC member Jawahar Sircar, then rural development minister Giriraj Singh informed the Rajya Sabha on December 6, 2023, that Rs 13,965.91 crore was pending as the central share for two schemes—MGNREGS and PMAY-G.
West Bengal government sources, however, say that total dues of about Rs 18,000 crore are pending under three rural development schemes—MGNREGS, PMAY-G and the Pradhan Mantri Gram Sadak Yojana.
In January, West Bengal Rural Development Minister Pradip K Mazumdar wrote a letter to Union Rural Development Minister Shivraj Singh Chouhan, seeking an appointment for a meeting to urge him for the release of funds.
MGNREGS fund delays across states
The Committee expressed its concerns about the “persistent delays” in the disbursement of the Centre’s share of funds under the wage and material components of MGNREGS across multiple states and Union Territories.
“As per the information provided by the Department of Rural Development, as of 15.02.2025, the pending liabilities stand at Rs 12,219.18 crore in wages, Rs 11,227.09 crore in material components, and total pending liabilities are Rs 23,446.27 crore. This accounts for 27.26% of the current budget, meaning that more than one fourth of the allocated funds will be used to clear previous years’ dues. Consequently, the actual working budget for the current financial year is reduced to Rs 62,553.73 crore, significantly limiting the scheme’s capacity to function effectively and meet its primary objective of preventing rural distress and ensuring livelihood security,” it said.
“Therefore, the Committee urges the Department of Rural Development to take immediate steps to ensure the timely release of the Centre’s share of funds under wages and materials,” it added.
The committee also recommended that the central department apprise itself of the existing high demand for jobs under the MGNREGS at the ground level more realistically and press upon the Ministry of Finance for increased allocation to the scheme.
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