NITI Aayog conducts ‘evaluation study’ of MGNREGS amid proposal for 5.23 lakh crore outlay till 2029-30

The Ministry of Finance has told all ministries and departments that no centrally sponsored scheme or central sector scheme will be considered for continuation beyond March 31, 2026, without a third-party evaluation. Sources say the EFC approval and appraisal are part of a central exercise to evaluate and approve the Government’s schemes for the next Finance Commission cycle.

In a written reply to a question asked by Communist Party of India (Marxist-Leninist) Liberation member Sudama Prasad, Union Minister of State of Rural Development Kamlesh Paswan informed the House that the Development, Monitoring and Evaluation Office (DMEO), NITI Aayog, has recently taken up an “evaluation study” of the MGNREGS.

The last time the NITI Aayog had conducted an “evaluation study” of the MGNREGS was in 2019-20. It had also evaluated five other schemes. “The study focused on the effectiveness, efficiency, impact, and sustainability of these schemes, including the Mahatma Gandhi NREGS, to gauge their overall contribution to the national rural economy,” Paswan said.

Paswan also shared details of internal audits and review of the MGNREGS conducted in recent years. “The Internal Audit Wing (IAW) under the Office of the Chief Controller of Accounts (CCA) has been conducting Risk-Based Internal Audits of MGNREGS implementation in states since FY 2013-14…Risk Based Internal Audits of Mahatma Gandhi NREGS have been conducted in 225 districts of 30 states/UTs since 2013-14,” the Union minister stated.

“Further, Amarjeet Sinha Committee was constituted in 2021 to examine various factors affecting demand for wage employment in the rural sector in different parts of country and to study/analyze the trends of expenditure across States under Mahatma Gandhi NREGS along with reasons for inter-state variations with specific focus on governance issues. The report of the Committee has since been received and some of the recommendations have been identified for appropriate action,” he further said.

“In addition to this, Development, Monitoring and Evaluation Office (DMEO), NITI Aayog also has recently taken up an Evaluation Study of Mahatma Gandhi NREGS,” Paswan added.

The MGNREGS is backed by law and therefore the EFC approval is just a formality.

Demand for work under MGNREGS

The MGNREGS was launched in 200 most backward rural districts of the country in 2006-07, was extended to an additional 130 districts during 2007-08, and to the entire country from the financial year 2008-09. The scheme saw a spike in demand for work during 2020-21, when a record 7.55-crore rural families availed of the scheme in the wake of Covid outbreak. The scheme became a safety net for migrants who returned to their villages during the Covid lockdown in 2020.

However, since then the number of families that worked under the MGNREGS has gradually come down—7.25 crore in 2021-22, 6.18 crore in 2022-23, 5.99 crore in 2023-24, and 5.79 crore in 2024-25. The scheme has been suspended in West Bengal since March 2022.