Hyderabad: Union Finance Minister Nirmala Sitharaman said on Sunday that MGNREGA is a demand driven program and as the demand will rise the allocations will also vary.
While answering to ETV Bharat's question regarding low allocations to MGNREGA, Sitharaman said "For no program compared to the Budget Estimate (BE) which we have announced in July 2019 have we reduced in the BE of 2020. MGNREGA is a demand driven program so as the demand comes we will have to keep servicing it."
"We have not reduced what was in the BE compared that with BE 2020 we have not reduced. If in the Revised Estimate (RE) stage the amount was big and if that's not either utilised or if it is utilised based on the demand we will keep giving," the minister added.
As per the budget document, 2019-20 actual estimates for MGNREGA was Rs 71,000 crore and for the upcoming financial year 2020-21, it is Rs 61,500 crores. Which means that the allocations for the next year are Rs 8,500 crores less.
RBI's inflation projection for the First half (H1) of FY 21 is around 5 per cent and Q3 is 3.2 per cent. Also, around 13 crores households in the rural area are dependent on NREGA for their livelihood making allocations in this area a major subject.
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The Finance Minister also asked T V Somanathan, Expenditure Secretary in Finance Ministry to give the exact figures regarding the allocations.
Somanathan explained "The total allocation for Ministry of Rural Development was Rs 1,17,647 crores in 2019-20 and has gone up to Rs 1,20,147 crores in 2020-21. For NREGA alone Budget Estimate (BE) 2019-20 was Rs 60,000 crores, Budget Estimate for 2020-21 is Rs 61,500."
"We project based on an estimated demand but if actuals are higher which depends on seasonal conditions depending on the demands arising in various states at various points of time. It will be suitably provided in the Revised Estimates (RE) because NREGA is a demand-based statuary program," he added.
Clarifying that if there is less demand in the rural area for this program the Expenditure Secretary said that the demand in rural area fluctuates.
"No-no, I am saying that the demand fluctuates. Some years it is higher, some years it is lower. So, we make a provision based on an estimate which is a moving average type of estimate. But if the actual demand is more we will provide it in the revised estimate as we did this year. This year in 2019-20 the budget estimate was 60, the revised estimate is 71 we have added more than 17 per cent into that," he said.
( - Shravan Nune, Business Editor)
