Uncertainty looms over the resumption of NREGS in Bengal as the Centre is yet to clear the labour budget

The labour budget refers to anticipated demand for unskilled manual work for execution of a shelf of work identified to be taken up during a financial year. The labour budget is approved by the Empowered Committee headed by the Union Rural Development Secretary. The states can generate their demands for funds using NREGASoft, the Management Information System (MIS) of the MG-NREGS, only after this committee clears their labour budget proposals.

Under the NREGS, the MoRD releases funds to states “based on agreed labour budget”. Generally, the states’ labour budget proposals are approved by the MoRD by the end of January before the beginning of each financial year (April-March). In Bengal’s case, no labour budget has been approved post financial year 2021-22 after the Centre suspended implementation of the scheme in the state.

By invoking Section 27 of the MGNREGA, 2005, the Centre had stopped release of funds to West Bengal with effect from March 9, 2022, “due to non-compliance of directives of Central Government”. Since then, no work under the NREGS has taken place in the state.

In an order on 18th June 2025, the Calcutta High Court had directed that the “scheme be implemented prospectively with effect from 1st August 2025”.

However, the West Bengal officials say that they have not received any intimation from the Centre about resumption of the scheme in the state. They have also been urging the MoRD for approval of the labour budget but the same has not happened either, said an official.

The MoRD officials have kept mum so far on the issue of Bengal. When asked whether the ministry has challenged the June 18 Calcutta High Court order, the concerned officials at the MoRD did not respond. However, sources say that the Centre has not yet challenged the order. On July 22, Rural Development Minister Shivraj Singh Chouhan had told Lok Sabha that the order of the High Court is “being studied in the Ministry to decide further course of action”.

In January this year, West Bengal’s Rural Development Minister Pradip K Mazumdar wrote a letter to Chouhan, seeking an appointment for a meeting, which has not happened so far. Earlier, multiple meetings between the Centre and West Bengal government officials have taken place but the issue has not been resolved till date.

Before the Centre suspended the MG-NREGS in March 2022, West Bengal figured among the top performers with 51-80 lakh families in the state availing the scheme annually between 2014-15 and 2021-22. The data available on the NREGS portal shows that the number of households working through the rural job guarantee scheme stood at 51 lakh in 2014-15, 61 lakh in 2015-16, 58 lakh in 2016-17, 52 lakh in 2017-18, 43.89 lakh in 2018-19, 54.57 lakh in 2019-20, 79.64 lakh in 2020-21, and 75.97 lakh in 2021-22.